Japanese Stock Futures Drop Before BOJ Member Speech
Japanese and Australian stock futures fell, indicating the Asia-Pacific equities benchmark index will extend its longest losing streak in more than six months, as investors await a speech by a Bank of Japan policy maker.
American Depositary Receipts of National Australia Bank (NAB), the country’s largest lender by assets, lost 0.8 percent from the close of trading in Sydney. ADRs of Honda Motor Co. gained 2.6 percent as the yen weakened, indicating shares of the carmaker will rebound from the lowest level in nearly a month.
Futures on the Nikkei 225 Stock Average traded at 13,925 in Chicago, down from 14,030 at the close in Osaka, Japan. They were bid in the premarket at 13,930 at 8:05 a.m. in Tokyo. Futures on Australia’s S&P/ASX 200 Index (AS51) lost 0.3 percent and New Zealand’s NZX 50 Index gained 0.3 percent.
“Markets are starting to price in a lessening of the monthly purchases of the Federal Reserve’s unprecedented policy stimulus,” said Matthew Sherwood, Sydney-based head of investment market research at Perpetual Ltd., which manages about $25 billion. “This process is now a question of when, not if.”
The MSCI Asia Pacific Index fell the past five days, its longest losing streak since November, as speculation grew the Fed will reduce its bond purchases as the U.S. economy improves and China manufacturing data missed estimates.
Standard & Poor’s 500 Index futures rose 0.1 percent. Markets in the U.S. reopen today after a holiday.
Futures on the Hang Seng Index gained 0.3 percent and futures on the Hang Seng China Enterprises Index were little changed.
A gain of 5.8 percent in 2013 through yesterday on the MSCI Asia Pacific Index left the measure trading at 13.4 times estimated earnings, compared with a multiple of 15 on the S&P 500 and 13.4 on the Stoxx 600, according to data compiled by Bloomberg.
Japan’s Topix Index yesterday slid 3.4 percent, extending the worst weekly decline in more than a year. The measure has lost 9.6 percent from May 22, when it closed at the highest level since August 2008. The exporter-heavy Nikkei 225 Stock Average fell 3.2 percent yesterday.
The two gauges have risen more than 30 percent this year to outperform all major equity indexes amid unprecedented monetary easing policies from the Bank of Japan. The S&P 500 Index is up 16 percent and the Stoxx Europe 600 Index rose 8.8 percent this year.
Bank of Japan board member Ryuzo Miyao is due to speak in Tokyo today.
The yen fell 0.2 percent to 101.12 as of 8:06 a.m. in Tokyo.
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