Japan, Australian Stock Futures Fall on Greece Bailout

Japanese and Australian stock futures fell as as concern over Greece’s debt crisis overshadowed speculation central banks will take action to spur economic growth.

American depositary receipts of camera maker Canon Inc. (7751), which gets 31 percent of its revenue in Europe, slid 1 percent from the closing share price in Tokyo. ADRs of Australia & New Zealand Banking Group Ltd. (ANZ), Australia’s third-largest lender, dropped 0.8 percent. Shares of China Petroleum and Chemical Corp. may be active as China increases gasoline and diesel prices.

Futures on Japan’s Nikkei 225 Stock Average (NKY) expiring in September closed at 8,815 in Chicago yesterday, down from 8,870 in Osaka, Japan. They were bid in the pre-market at 8,810 in Osaka at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index dropped 0.2 percent today. New Zealand’s NZX 50 Index added 0.2 percent in Wellington.

“There’s still a lot of uncertainty around the implementation of policy in Europe,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion. “The German constitutional court ruling on ESM is obviously a key risk over the next few days and there’s talk about Greece struggling to come out with budget cuts,” he said, referring to the European Stabilization Mechanism that is designed to rescue indebted nations in the euro zone.

The MSCI Asia Pacific Index (MXAP) gained 1.7 percent this quarter through yesterday as expectations of further stimulus measures overshadowed signs of a global economic slowdown. The Asian benchmark traded at 12.4 times estimated earnings, compared with 13.8 times for the Standard & Poor’s 500 Index and 12 times for the Stoxx Europe 600 Index.

Budget Cuts

The U.S. Federal Reserve’s Open Market Committee meets this week and will release a statement on Sept. 13.

Futures on the Standard & Poor’s 500 Index (SPXL1) were little changed today. The index fell 0.6 percent in New York yesterday as Greek Prime Minister Antonis Samaras met officials from the nation’s creditors after failing to secure agreement from coalition partners on spending cuts.

Germany’s Federal Constitutional Court is due to rule tomorrow on the country’s participation in the European Stability Mechanism, a permanent 500 billion-euro fund that offers loans to member states and may buy their bonds to lower borrowing costs.

China, the world’s second-biggest oil consumer, increased gasoline and diesel prices for the second time in about a month as rising crude costs threaten to curb profits at the nation’s largest oil refiners.

The Bloomberg China-US Equity Index of the most-traded Chinese companies in the New York lost 1 percent to 87.92 yesterday, the biggest slump since July 30.

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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