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Japanese Stock Futures Little Changed on China Growth Questions

Japanese stock futures and Australian equities were little changed after an adviser to the People’s Bank of China said the government won’t provide big economic stimulus and a strong rebound in growth is unlikely.

American Depositary Receipts of Komatsu Ltd. (6301), the world’s second-biggest construction-equipment maker that makes 80 percent of sales outside Japan, slid 0.5 percent. BHP Billiton Ltd. (BHP), the world’s largest mining company, advanced 0.4 percent in early Sydney trading as metals prices climbed. GrainCorp Ltd. (GNC) may be active as a person familiar with the matter said Wilmar International Ltd. bought a stake in eastern Australia’s largest grain handler.

Futures on Japan’s Nikkei 225 Stock Average expiring in December closed at 8,970 in Chicago yesterday, down from 8,980 in Osaka, Japan. They were bid in the pre-market at 8,960 in Osaka at 8:05 a.m. local time. Australia’s S&P/ASX 200 Index was little changed today. New Zealand’s NZX 50 Index retreated 0.3 percent in Wellington.

“We’re seeing slow signs of a bottoming in the Chinese economy,” said Stan Shamu, a market strategist at IG Markets Ltd., a provider of trading services in equities, bonds and currencies in Melbourne. “No one is too sure what this means for further stimulus.”

Futures on the Standard & Poor’s 500 Index were little changed today. The gauge fell 0.2 percent yesterday as Google Inc. pulled down technology shares after reporting third-quarter profit and sales that missed estimates. Google dropped 8 percent after the earnings report was filed inadvertently during regular trading hours.

Relative Value

The MSCI Asia Pacific (MXAP) Index rebounded about 14 percent through yesterday from this year’s low on June 4 as stimulus measures in Europe, the U.S., Japan and China boosted market sentiment amid a global economic slowdown and Europe’s debt crisis. The Asian benchmark traded at 13.1 times estimated earnings on average, compared with 13.9 for the Standard & Poor’s 500 Index and 12.3 for the Stoxx Europe 600 Index.

China’s government won’t provide big economic stimulus and a strong rebound in growth is unlikely, said Song Guoqing, an adviser to the People’s Bank of China. Local-government investment plans probably won’t materialize quickly because they’re reliant on the central government and banks for funding, Song said in a speech at Tsinghua University in Beijing yesterday.

The Thomson Reuters/Jefferies CRB Index (CRY) of raw materials climbed 0.3 percent yesterday.

Chinese equities trading in the U.S. climbed in New York to their highest valuation relative to U.S. stocks since May as rising retail sales and expanding industrial production signal the world’s second-largest economy is reviving.

The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese companies in the U.S. added 0.5 percent to a five-month high of 96.21 yesterday.

To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net

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

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