Japan Stock Futures Fall as Moody’s Cuts Germany Outlook

Japanese and Australian stock futures fell after Moody’s Investors Service cut the credit outlooks of Germany, the Netherlands and Luxembourg, renewing concern about Europe’s debt crisis. Greece creditors are due to meet this week.

American depositary receipts of Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest lender, lost 1.2 percent from the closing share price in Tokyo. ADRs of Woodside Petroleum Ltd. (WPL), Australia’s second-biggest oil and gas producer, slid 0.2 percent after oil fell the most this year. Shares of Cnooc Ltd. (883) may be active after China’s largest offshore energy explorer agreed to pay $15.1 billion in cash to acquire Canada’s Nexen Inc. in the biggest overseas takeover by a Chinese company.

Futures on Japan’s Nikkei 225 Stock Average (NKY) expiring in September closed at 8,465 in Chicago yesterday, down from 8,510 in Osaka, Japan. They were bid in the pre-market at 8,460 in Osaka, at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index slid 0.3 percent today. New Zealand’s NZX 50 Index dropped 0.7 percent in Wellington.

“Equity markets are in a hurry for a resolution, and I don’t think policy makers, politicians and central banks in Europe can meet that expectation in a realistic way,” said Prasad Patkar, who helps manage about $1 billion at Platypus Asset Management Ltd. in Sydney. “It’s going to take a lot longer to solve Europe.”

In Hong Kong, the opening of local markets may be delayed today as the city enacted its highest storm signal for the first time since 1999 as Severe Typhoon Vicente intensified.

Spain Yields

Futures on the Standard & Poor’s 500 Index (SPXL1) declined 0.3 percent today. The index fell 0.9 percent in New York yesterday as Spain’s 10-year bond yields surged to a euro-era high on bets more of the region will ask for aid. After the market closed, Moody’s said it cut Germany, the Netherlands’ and Luxembourg’s Aaa credit rating outlooks to negative, citing “rising uncertainty” about Europe’s debt crisis. Risks that Greece may exit the 17-nation euro currency and “increasing likelihood” of collective support for European countries such as Spain and Italy were among reasons for the change, Moody’s said yesterday.

Shares of Kirin Holdings Co., a Japanese brewer, is in early discussions for a potential bid for Asia Pacific Breweries Ltd., the Wall Street Journal reported.

MSCI Down

The MSCI Asia Pacific Index (MXAP) fell 11 percent from this year’s high on Feb. 29 through yesterday amid concern China’s economy is slowing and Europe’s sovereign-debt crisis will worsen. The regional benchmark traded at 11.6 times estimated earnings as of yesterday, compared with 13.1 for the Standard & Poor’s 500 Index and 10.6 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

The Bloomberg China-US Equity Index of the most-traded Chinese shares in the U.S. sank 2.1 percent to 84.32 in New York, the lowest close since Oct. 4, on concern that a slowdown in the world’s second-largest economy will erode earnings.

In China, HSBC Holdings Plc and Markit Economics are scheduled today to report its preliminary reading on the nation’s manufacturing for July.

Crude oil for September delivery slumped $3.69 to settle at $88.14 a barrel on the New York Mercantile Exchange. It was the biggest decrease for a front-month contract since Dec. 14.

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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