Japanese, Australian Stock Futures Fall on Economic Concerns; Sony Drops
Japanese, Australian Stock Futures Fall on Economic Concerns
Jack Atley/Bloomberg
Japanese and Australian stock futures fell as slower-than-estimated growth in personal incomes in the U.S. heightened concern the economic recovery may slow and the yen strengthened.
Japanese and Australian stock futures fell as slower-than-estimated growth in personal incomes in the U.S. heightened concern the economic recovery may slow and the yen strengthened. Photographer: Jack Atley/Bloomberg
Japanese and Australian stock futures fell as slower-than-estimated growth in personal incomes in the U.S. heightened concern the economic recovery may slow and the yen strengthened.
American depositary receipts of Sony Corp., an electronics maker that earns more than 70 percent of sales outside of Japan, and Canon Inc., a camera maker that gets more than 80 percent of its revenue overseas, sank about 2 percent from the closing share price in Tokyo. Those of Toyota Motor Corp., the world’s largest carmaker, lost 1.5 percent after the yen strengthened. ADRs of Woodside Petroleum Ltd., Australia’s second-largest oil and gas producer, slid 0.6 percent in Sydney after crude dropped.
“People are concerned that the sluggish growth in U.S. personal spending would have a negative impact on the world economy as exports of Japan, China and other Asian countries count on it,” said Fumiyuki Nakanishi, a strategist at Tokyo- based SMBC Friend Securities Co. “Americans’ personal spending bolsters the global economy.”
Futures on Japan’s Nikkei 225 Stock Average expiring in September closed at 8,985 in Chicago yesterday, compared with 9,125 in Singapore. They were bid in the pre-market at 8,990 in Osaka, Japan, at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index slumped 1.2 percent today. New Zealand’s NZX 50 Index lost 0.3 percent in Wellington.
S&P Futures
Futures on the Standard & Poor’s 500 Index were little changed today. In New York, the index slipped 1.5 percent yesterday after a government report showed income growth failed to keep up with the biggest increase in consumer spending since March.
Financial companies, chipmakers and retailers led declines in all 24 industry groups in the S&P 500 after government data showed personal incomes climbed 0.2 percent in July, less than the 0.3 percent projected in a Bloomberg survey of economists. Personal spending rose 0.4 percent, Commerce Department figures showed. Disposable incomes, or the money left over after taxes, dropped for the first time since January after adjusting for inflation.
The yen appreciated to as high as 84.49 against the dollar, compared with 85.25 at the close of stock trading in Tokyo yesterday. Against the euro, Japan’s currency strengthened to 107.03 from 108.57. The stronger yen reduces income at Japanese companies when overseas revenue is converted into local currency.
The yen rose against all 16 of its most-traded counterparts on speculation the Bank of Japan’s decision to increase credit- easing measures won’t be enough to weaken it from near a 15-year high.
Crude oil for October delivery slipped 0.6 percent in New York yesterday, the first drop in four days.
The MSCI Asia Pacific Index has fallen 8.4 percent from its high this year on April 15 on concern Europe’s debt crisis and China’s steps to curb property prices will slow global economic growth. Stocks in the index trade at 13.5 times estimated earnings on average, compared with 12.6 times for the Standard & Poor’s 500 Index and 11.3 times for the Stoxx Europe 600 Index.
To contact the reporter on this story: Norie Kuboyama in Tokyo at nkuboyama@bloomberg.net
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