Hong Kong, Australian Stock Futures Fall on Fed Stimulus Concern

Stock futures in Hong Kong and Australia fell as concern of reduced Federal Reserve stimulus continued to weigh on the region’s shares. Equity futures rose in Japan.

American Depositary Receipts of BHP Billiton Ltd., the world’s largest mining company, declined 1.7 percent from the close of trading in Sydney on June 21. ADRs of Cathay Pacific Airways Ltd., the world’s largest cargo and freight carrier, sank 0.9 percent from the close in Hong Kong. Those of Nissan Motor Co. gained 1 percent from the close in Tokyo as the yen weakened against the dollar, boosting the earnings outlook for Japanese exporters.

Futures on Australia’s S&P/ASX 200 Index retreated 0.7 percent and those on Hong Kong’s Hang Seng Index slid 1.2 percent. Futures expiring in September on Japan’s Nikkei 225 Stock Average (NKY) were bid in the pre-market at 13,420 in Osaka at 8:05 a.m. local time compared with 13,340 at the close in Chicago on June 21. New Zealand’s NZX 50 Index rose 0.2 percent.

“Markets remain hostage to concerns over U.S. policy and tighter liquidity,” said Michael Kurtz, Hong Kong-based chief global equity strategist at Nomura Holdings Inc., Japan’s largest brokerage. Still, “we believe a combination of further easing in some geographies and cyclically improving data in others will continue to support risk assets.”

Futures contracts on the Hang Seng China Enterprises Index of mainland Chinese companies trading in Hong Kong retreated 1.1 percent. The Bloomberg China-US Equity Index of the most-traded Chinese shares in the U.S. rose 0.9 percent in New York on June 21.

Global Slump

The MSCI All-Country World Index, a gauge of developed and emerging market shares, sank the most in a year last week and almost $2 trillion was erased from the value of global equities after the Fed indicated it could start paring asset purchases this year should the U.S. economy continue to improve.

The MSCI Asia Pacific Index, the benchmark regional equities gauge, retreated 12 percent from the closing level on May 20, which was the highest since June 2008. That left the measure trading at 12.4 times average estimated earnings, compared with multiples of 14.4 for the Standard & Poor’s 500 Index (SPX) and 12.4 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

The Thomson Reuters/Jefferies CRB Commodity Index sank 0.5 percent on June 21.

Futures on the Standard & Poor’s 500 Index slid 0.2 percent. The yen fell 0.6 percent to 98.44 per dollar as of 7:58 a.m. in Tokyo.

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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