Japanese and Australian stock futures
climbed as global policy makers signaled they may take steps to
stimulate economic growth.
American Depositary Receipts of Mitsubishi Corp. (8058), the
biggest Japanese trading house, rose 2.3 percent from the
closing price in Tokyo and those of Komatsu Ltd., a mining
equipment maker, gained 2.9 percent as investors bought shares
of companies with profits closely tied to economic growth. ADRs
of BHP Billiton Ltd. (BHP), the world’s largest mining company,
advanced 2.4 percent in Sydney as metals prices climbed.
Futures on Japan’s Nikkei 225 Stock Average expiring this
month closed at 8,665 in Chicago yesterday, up from 8,530 in
Osaka, Japan. They were bid in the pre-market at 8,650 in Osaka
at 8:05 a.m. local time. Futures on Australia’s SP/ASX 200
Index advanced 1.5 percent today. New Zealand’s NZX 50 Index
rose 0.5 percent in Wellington.
“The Chinese will take action to stimulate the economy and
the Americans will similarly respond with an extension of
Operation Twist or more quantitative easing,” said Prasad Patkar, who helps manage about $1 billion at Platypus Asset
Management Ltd. in Sydney. “For a sustained rally, we need a
period of stability where we’re not in a fire-fighting-crisis
mode.”
European Central Bank President Mario Draghi said policy
makers discussed cutting interest rates yesterday and officials
stand ready to act as the euro region’s growth outlook worsens.
Federal Reserve Bank of Atlanta President Dennis Lockhart
said extending Operation Twist, the central bank’s stimulus
program that lengthen maturities of debt on its balance sheet,
is an “option on the table.” Chinese Premier Wen Jiabao vowed
last month to focus more on increasing growth after trade and
domestic demand were below forecasts in April.
U.S. Futures
Futures on the Standard Poor’s 500 Index advanced 0.1
percent today. The gauge soared 2.3 percent yesterday for its
biggest gain of the year.
The MSCI Asia-Pacific (MXAP) fell 2 percent this year through
yesterday, compared with a 1.9 percent drop on the Stoxx Europe
600 Index and a 4.6 percent gain on the SP 500. Declines in
regional equity markets cut the average price of stocks on the
Asian benchmark to 11.3 times estimated earnings. That compares
with 12.6 times for the SP 500 and a multiple of 10 for the
Stoxx 600.
The Asian benchmark gauge has dropped 13 percent from its
peak this year on Feb. 29. amid concern growth is slowing in
China and the U.S. as Europe’s debt crisis deepens.
The SP GSCI gauge of commodities gained 1.3 percent
yesterday.
The Bloomberg China-US Equity Index (CH55BN) of the most-traded
Chinese shares in the U.S. climbed 2.7 percent to 90.21
yesterday in New York, bringing its two-day gain to 4 percent,
the most since April 12.
To contact the reporter on this story:
Adam Haigh in Sydney at
ahaigh1@bloomberg.net
To contact the editor responsible for this story:
Nick Gentle at
ngentle2@bloomberg.net
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