Japanese, Stock Futures Fall on U.S. Earnings, Europe Woe

Japanese and Australian stock futures fell after a surge in bad loans held by Spanish banks and disappointing earnings reports by Intel Corp. and International Business Machines Corp. dimmed the earnings outlook for Asia’s exporters.

American depositary receipts of Canon Inc. (7751), Japan’s biggest camera maker that gets 58 percent of its revenue in Europe and the Americas, dropped 0.5 percent from the closing share price in Tokyo. ADRs of Australia & New Zealand Banking Group Ltd. (ANZ), Australia’s third largest lender, slid 0.2 percent. Shares of Nippon Sheet Glass Co. may be active after the Japanese glassmaker said its chief executive quit after clashing with the board over the company’s strategy.

Futures on Japan’s Nikkei 225 Stock Average (NKY) expiring in June closed at 9,600 in Chicago yesterday, down from 9,660 in Osaka, Japan. They were bid in the pre-market at 9,610 in Osaka, at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index slid 0.1 percent today. New Zealand’s NZX 50 Index fell 0.1 percent in Wellington.

“We are seeing the clear need by the authorities to address funding concerns for a number of sovereign issues,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “Today we will see prices consolidate.”

U.S. Earnings

Futures on the Standard & Poor’s 500 Index (SPXL1) rose 0.1 percent today. The index dropped 0.4 percent in New York yesterday as Intel forecast a gross margin that was lower than some analysts predicted and IBM’s sales missed forecasts.

Share also declined as non-performing loans in Spain as a proportion of total lending jumped to 8.16 percent in February, the highest level since 1994, from less than 1 percent in 2007, the Bank of Spain said yesterday. Spain is selling two- and 10- year bonds today.

SouFun Holdings Ltd. led Chinese property stocks lower in New York trading after home prices in the nation tumbled. The Bloomberg China-US Equity Index of the most traded Chinese shares in the U.S. was little changed at 102.76 yesterday.

The MSCI Asia Pacific Index (MXAP) rose 9.8 percent this year through yesterday, compared with a 10.1 percent gain by the S&P 500 and a 5.4 percent advance by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 12.7 times estimated earnings on average, compared with 13.2 times for the S&P 500 and 10.7 times for the Stoxx 600.

To contact the reporter on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.

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