Japan Futures Signal Nikkei Rebound Amid Earnings Outlook
Japanese stock futures rose, signaling the Nikkei 225 Stock Average will rebound from the worst slide since November, amid speculation earnings will hold up and after billionaire investor Warren Buffett said American lenders are in “fine shape.”
American depositary receipts of American depositary receipts of Sumitomo Mitsui Financial Group Inc., Japan’s second-biggest bank, climbed 1.9 percent from the closing share price in Tokyo. ADRs of Sony Corp., Japan’s biggest consumer electronics exporter, climbed 0.8 percent after shares yesterday fell 4.5 percent. Those of BHP Billiton Ltd., the world’s largest mining company, rose 1.1 percent.
Futures on Japan’s Nikkei 225 expiring in June closed at 9,205 in Chicago yesterday, up from 9,110 in Osaka, Japan. They were bid in the pre-market at 9,210 in Osaka at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index advanced 0.8 percent today. New Zealand’s NZX 50 Index rose 0.1 percent in Wellington.
“It’s not as bad as it seems,” said Stan Shamu, a market strategist at IG Markets in Melbourne, a provider of trading services in stocks, bonds and commodities. “There are still growth concerns but yesterday was just an easier decision for people to exercise caution. After such a big reaction we’d expect markets to come back.”
Futures on the Standard & Poor’s 500 Index rose less than 0.1 percent today. The gauge finished the day little changed yesterday in New York, recovering from a 0.4 percent decline after Warren Buffett said American lenders are in “fine shape,” propelling a rally in bank shares.
Asian stocks fell yesterday, with the benchmark MSCI Asia Pacific Index declining the most in six months, as concern grew that the Europe’s commitment to budget cuts may worsen after Francois Hollande was elected France’s first Socialist president in almost two decades.
The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese shares in the U.S. lost 0.1 percent to 101.85 in New York, the lowest close since April 25. Property website owner SouFun fell to a two-month low, while PetroChina, the country’s largest oil producer, tumbled to the least since April 16.
The Bloomberg China-US Equity Index of the most-traded Chinese shares in the U.S. lost 0.1 percent to 101.85 in New York, the lowest close since April 25. Property website owner SouFun fell to a two-month low, while PetroChina, the country’s largest oil producer, tumbled to the least since April 16. Aluminum Corp. of China Ltd. traded at a premium to its Hong Kong stock after its parent was asked to help the government consolidate China’s rare earth industry.
Analysts forecast earnings for companies on the Nikkei 225 will grow 68 percent this year, according to data compiled by Bloomberg. Japan’s benchmark stocks gauge trades for 13.9 times estimated earnings, the data show.
The MSCI Asia Pacific Index (MXAP) has risen 6.5 percent this year through yesterday, compared with a 9.8 percent gain by the S&P 500 and a 4.2 percent advance by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 12.4 times estimated earnings on average, compared with a multiple of 13 for the S&P 500 and 10.6 times for the Stoxx 600.
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