Japanese, Australian Stock Futures Fall on Earnings Outlook; Honda Drops
Japanese and Australian stock futures fell after some companies lowered their forecasts and the yen appreciated.
American depositary receipts of Advantest Corp., the world’s biggest maker of memory-chip testers, dropped 0.3 percent from the closing share price in Tokyo after Nvidia Corp., a U.S. graphics chips designer, cut its sales forecast. Those of Honda Motor Co., lost 1 percent after Kyodo News reported the automaker will cut domestic production. Those of Sony Corp., the world’s No. 3 television maker, surged 6.1 percent after the company raised its full-year profit forecast. ADRs of Westpac Banking Corp. fell 0.8 percent from the close in Sydney.
“Some U.S. companies, technology firms in particular, are cautious about the earnings outlook and they cut their forecasts, so that may weigh on the market,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc. “However, Japanese companies’ earnings are steadily improving. This will likely support the market.”
Futures on Japan’s Nikkei 225 Stock Average expiring in September closed at 9,640 in Chicago yesterday, compared with 9,700 in Singapore. They were bid in the pre-market at 9,640 in Osaka, Japan, at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index slid 0.4 percent today. New Zealand’s NZX 50 Index gained 0.2 percent in Wellington.
Earnings Peak
Today is the peak for April-June earnings reports in Japan, with 322 companies out of the 1,671 in the Topix index announcing results today, according to data compiled by Bloomberg.
Futures on the Standard & Poor’s 500 Index retreated 0.1 percent. In New York, the S&P 500 yesterday fell 0.4 percent to 1,101.53 as earnings and forecasts disappointed investors at technology and consumer companies.
Nvidia, which designs graphics chips, lowered its second- quarter sales forecast and LSI Corp., a U.S. maker of chips used in computer disk drives, forecast sales lower than analysts’ estimates.
The number of Americans filing first-time claims for unemployment insurance fell to 457,000 last week from a revised 468,000, Labor Department figures showed yesterday in Washington. Applications were in line with the median forecast in a Bloomberg News survey.
Valuations, Yen
The MSCI Asia Pacific Index has lost 0.6 percent in 2010, compared with a 1.2 percent drop by the S&P 500 and a 0.9 percent gain by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 14.4 times estimated earnings, compared with 13.3 times for the S&P and 11.9 times for the Stoxx.
The yen appreciated to 86.69 against the dollar, compared with 87.26 at the close of stock trading in Tokyo yesterday. The stronger yen reduces income at Japanese companies when overseas revenue is converted into local currency.
The London Metal Exchange Index, a measure of six metals including copper and zinc, advanced 1 percent yesterday. Crude oil for September delivery gained for the first time in a week, rising 1.8 percent to $78.36 a barrel in New York yesterday.
Japan’s unemployment rate unexpectedly increased to 5.3 percent in June from 5.2 percent a month earlier, the statistics bureau said today. The median forecast of 26 economists surveyed by Bloomberg News was 5.2 percent.
Consumer prices excluding fresh food fell 1 percent in June from a year earlier, after a 1.2 percent decline in May, the statistics bureau said today.
The Trade Ministry is scheduled to announce the nation’s industrial production at 8:50 a.m. in Tokyo. Factory output rose 0.2 percent in June from May, according to the median estimate of 26 economists surveyed by Bloomberg News.
To contact the reporters for this story: Akiko Ikeda in Tokyo at iakiko@bloomberg.net; Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net.
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