Japanese, Australian Stock Futures Gain on Eased Euro Concerns; BHP Gains
Japanese and Australian stock futures rose as concern about European issues were eased after German lawmakers approved their country’s share of a euro-region bailout.
American depositary receipts of Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank by market value, gained 1.7 percent above the Tokyo close. Those of Canon Inc., a camera maker that gets over a quarter of its revenue in the Americas, advanced 1.1 percent, after economists said orders for factory goods in the U.S. probably climbed in April. ADRs of BHP Billiton Ltd., the world’s biggest mining company, climbed 2.7 percent, after metal prices advanced.
“Investors may buy shares because disturbances in financial markets are calming down,” said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Securities Co. “There is a risk for shares to slump after a rally, as the European debt issues are not completely solved.”
Yen-denominated futures on Japan’s Nikkei 225 Stock Average expiring in June closed at 9,830 in Chicago on May 21, 0.9 percent higher than 9,740 in Singapore. They were bid in the pre-market at 9,860 as of 8:05 a.m. in Osaka. The Nikkei 225 closed at 9,784.54 on Friday.
The MSCI Asia Pacific Index slumped for a sixth day, falling 1.3 percent to the lowest level since Aug. 21. The gauge has tumbled 13 percent from its high this year on April 15 on concern Europe’s mounting government deficits will derail the economic recovery. Germany this week introduced a ban on naked short selling to calm the region’s financial markets.
Futures on the Standard & Poor’s 500 Index fell 0.1 percent. The gauge rose 1.5 percent, rebounding from the biggest drop this a year, as investors speculated equities may have fallen too much this week on concern about Europe’s debt crisis.
On May 21, German lawmakers approved their country’s share of a $1 trillion euro-region bailout in a vote, allaying market concern that they will balk at approving a second emergency aid package in as many weeks.
In the U.S., orders for factory goods, sales of new and existing homes and consumer spending probably climbed in April, indicating the U.S. recovery was strengthening before the European debt crisis rattled global financial markets, economists said reports this week may show.
Crude oil for June delivery gained as much as 0.9 percent in New York today. The London Metals Index, a measure of six metals including copper and zinc, gained 2.9 percent on May 21, the highest settlement since May 14.