Japanese Stock Futures Rise as U.S. Manufacturing Expands

Japanese and Australian stock futures rose after data showed U.S. manufacturing expanded more than expected and the yen fell.

American depositary receipts of Toyota Motor Corp. (7203), a carmaker that gets 31 percent of its revenue in North America, gained 1.2 percent from the closing share price in Tokyo. Those of Komatsu Ltd. (6301), the world’s second-largest construction equipment maker, rose 0.9 percent. ADRs of China Petroleum & Chemical Corp., a state-backed Chinese refiner, jumped 28 percent.

Futures on Japan’s Nikkei 225 Stock Average expiring in September closed at 13,915 in Chicago yesterday, compared with 13,870 in Osaka, Japan. They were bid in the pre-market at 13,930 in Osaka, at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index added 0.1 percent today. New Zealand’s NZX 50 Index rose 0.5 percent in Wellington.

“The manufacturing report wasn’t too strong to stoke concern about stimulus tapering and gave a boost to the market,” said Toshihiko Matsuno, a strategist at Tokyo-based SMBC Friend Securities Co., a unit of Japan’s second-biggest lender by market value. “A weaker yen will boost exports and help Japanese products sell abroad.”

The MSCI Asia Pacific Index retreated 9.4 percent through yesterday from the closing level on May 20, which was the highest since June 2008. The gauge traded at 12.8 times average estimated earnings as of yesterday, compared with 14.7 for the Standard & Poor’s 500 Index and 12.8 times for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

U.S. Manufacturing

Futures on the Standard & Poor’s 500 Index were little changed today after the index rose 0.5 percent in New York yesterday. The Institute for Supply Management’s manufacturing index increased to 50.9 in June from 49 a month earlier, the Tempe, Arizona-based group said yesterday. The median forecast of 85 economists surveyed by Bloomberg called for the measure to rise to 50.5. A reading above 50 signals expansion.

The yen reached 99.86 per dollar yesterday, the lowest since June 5. A weaker yen boosts the value of overseas earnings at Japanese companies.

Futures on Hong Kong’s Hang Seng Index slid 0.3 percent as the market reopens today after a public holiday. Contracts on the Hang Seng China Enterprises Index of mainland companies trading in Hong Kong lost 0.1 percent.

The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. was little changed yesterday.

To contact the reporters on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net; Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net

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

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