Japanese Stock Futures Little Changed on Spain Bailout

Japanese stock futures were little changed on mixed signals over whether Spain will request a bailout. Australian futures rose, signaling shares may extend yesterday’s rally fueled by a central bank interest-rate cut.

American depositary receipts of camera maker Canon Inc. (7751), which gets 31 percent of its revenue in Europe, fell 0.3 percent from the closing share price in Tokyo. Those of Toyota Motor Corp. (7203), Asia’s biggest carmaker by market value, rose 0.3 percent after its U.S. sales jumped 42 percent last month. ADRs of National Australia Bank Ltd. (NAB), Australia’s fourth-biggest lender by market value, advanced 0.6 percent.

Futures on Japan’s Nikkei 225 Stock Average (NKY) expiring in December closed at 8,790 in Chicago yesterday, compared with 8,780 in Osaka, Japan. They were bid in the pre-market at 8,790 in Osaka at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index added 0.4 percent today. New Zealand’s NZX 50 Index gained 0.2 percent in Wellington. Markets in China and South Korea are closed for a public holiday today.

“You’ve got a lot of uncertainty at the moment, and I think the market is going through a little bit of a consolidation phase,” said Cameron Peacock, a Melbourne-based market analyst at IG Markets, a provider of trading services for stocks, bonds and currencies. “Will Spain request a bailout? You’ve got U.S. presidential elections in five weeks and you’ve got a fiscal cliff looming at the end of the year.”

The fiscal cliff refers to U.S. budget negotiations, including automatic tax increases and spending cuts that may be triggered if deficit-reduction efforts fail.

Relative Value

The MSCI Asia Pacific Index gained 7.2 percent this year through yesterday as policy makers boosted stimulus measures to counter a global economic slowdown and tame Europe’s debt crisis. Stocks in the Asian benchmark are valued at 12.8 times estimated earnings on average, compared with 13.8 times for the Standard & Poor’s 500 Index (SPXL1) and 12 times for the Stoxx Europe 600 Index.

The Reserve Bank of Australia cut its benchmark interest rate yesterday to the lowest level since 2009 amid a deepening global slowdown. Governor Glenn Stevens and his board lowered the overnight cash-rate target by a quarter point to 3.25 percent.

Futures on the S&P 500 fell less than 0.1 percent today. The index added 0.1 percent in New York yesterday as a rebound in Apple Inc. overshadowed disappointment after Spanish Prime Minister Mariano Rajoy said a bailout request is not imminent. Spanish regional presidents met in Madrid yesterday after Economy Minister Luis de Guindos said the nation is pressing on with its analysis of whether to seek a bailout.

In China, the government is scheduled today to release a measure of non-manufacturing industries for September.

The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. climbed 0.2 percent to 92.3 in New York yesterday.

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

To contact the editor responsible for this story: John McCluskey at j.mccluskey@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.