Japanese, Australia Stock Futures Advance on U.S. Home Sales, Earnings
July 26 (Bloomberg) -- Sales of U.S. new homes rose 24 percent in June, more than forecast, to an annual pace of 330,000 following an unprecedented collapse the prior month, figures from the Commerce Department showed today. Bloomberg's Michael McKee reports. (Source: Bloomberg)
Japanese and Australian stock futures rose after new home sales increased more than expected in the U.S. and companies from Nippon Electric Glass Co. to Koito Manufacturing Co. reported higher profits.
American depositary receipts of Honda Motor Co., which counts North America as its biggest market, advanced 0.5 percent from the closing share price in Tokyo. Those of Nissan Motor Co., a carmaker which gets 35 percent of its revenue from North America, increased 0.3 percent. ADRs of Rio Tinto Group, the world’s third-largest mining company, gained 0.2 percent from the closing share price in Sydney as metal prices increased.
Futures on Japan’s Nikkei 225 Stock Average expiring in September closed at 9,535 in Chicago yesterday, compared with 9,490 in Singapore. They were bid in the pre-market at 9,530 in Osaka, Japan, at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index advanced 0.6 percent today. New Zealand’s NZX 50 Index gained 0.1 percent in Wellington.
“A jump in new home sales and better corporate earnings raised expectations for the U.S. economic recovery, even though the level is still low,” said Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co.
Futures on the Standard & Poor’s 500 Index slid 0.1 percent in New York today. The S&P 500 gained 1.1 percent to 1,115.01 yesterday after FedEx Corp., the second-largest U.S. package- shipping company, boosted its profit forecast and a report showing improved new-home sales eased concern the economic recovery will stall.
New Home Sales
Sales of U.S. new homes rose in June more than forecast following an unprecedented collapse the prior month. Purchases increased 24 percent from May to an annual pace of 330,000, figures from the Commerce Department showed yesterday in Washington.
The MSCI Asia Pacific Index has lost 2 percent in 2010, compared with a drop of less than 0.1 percent by the S&P 500 and a 1.3 percent gain by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 14.2 times estimated earnings, compared with 13.5 times for the S&P and 11.9 times for the Stoxx.
The London Metals Exchange Index, a measure of six metals including copper and zinc, climbed for six consecutive sessions, rising 1.6 percent yesterday.
Nippon Electric Glass Co., a Japanese glassmaker, said net income for the quarter ended June 30 jumped to 24.7 billion yen ($283 million) from 832 million yen a year earlier. Sales jumped 70 percent to 106 billion yen.
Koito Manufacturing Co., which makes auto-parts, raised its full-year net income forecast 18 percent to 13 billion yen, citing an increase of eco-friendly cars.
To contact the reporter for this story: Akiko Ikeda in Tokyo at iakiko@bloomberg.net.
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