Japan Stock Futures Rise as Yen Falls Past 100 Per Dollar

Japanese stock futures rose as the yen weakened beyond 100 per dollar for the first time in a month and investors awaited reports on U.S. jobs to assess the outlook for monetary stimulus.

American Depositary Receipts of Nissan Motor Co., a carmaker that gets more than 70 percent of revenue outside Japan, gained 0.8 percent. ADRs of Canon Inc. (7751), a camera maker that gets about 80 percent of sales abroad, climbed 0.7 percent as the weaker yen lifted the profit outlook for the nation’s exporters. Those of BHP Billiton Ltd. (BHP), the world’s largest mining company, sank 1.4 percent as metals prices retreated.

Futures on Japan’s Nikkei 225 Stock Average (NKY) expiring in September closed at 14,170 Chicago, up from 14,130 at the close in Osaka, Japan. They were bid in the pre-market at 14,200 in Osaka at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index retreated 0.5 percent and New Zealand’s NZX 50 Index fell 0.2 percent. Futures on Hong Kong’s Hang Seng Index gained 0.2 percent.

“Markets are pretty mixed, with all eyes on the non-farm payrolls data due at the end of the week and the impact that could have on the tapering talk,” Chris Green, director of economics and strategy at First NZ Capital Ltd., said by phone from Auckland. The weaker yen is “a stimulatory factor for that economy” in Japan.

The MSCI Asia Pacific Index, the benchmark regional equities gauge, retreated 8.9 percent through yesterday from the closing level on May 20, which was the highest since June 2008. That left the gauge trading at 12.7 times average estimated earnings compared with 14.6 for the Standard & Poor’s 500 Index (SPX) and 12.7 times for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

Futures on the Standard & Poor’s 500 Index were little changed after the measure yesterday slid 0.1 percent. Data today from the ADP Research Institute may indicate American companies increased employment in June.

Investors will watch the monthly U.S. labor report later this week for further signs of economic strength. Employers in the U.S. probably created 165,000 jobs in June, almost the same as in May, according to the median forecast of economists in a Bloomberg survey ahead of July 5 figures from the Labor Department. The unemployment rate probably fell to 7.5 percent, matching April’s four-year low.

The London Metal Exchange LMEX Index of industrial metals dropped 0.4 percent yesterday.

Futures contracts on the Hang Seng China Enterprises Index of mainland Chinese companies trading in Hong Kong advanced 0.2 percent. The Bloomberg China-US Equity Index of the most-traded Chinese shares in the U.S. dropped 2.2 percent in New York yesterday. Non-manufacturing and services reports are scheduled for today.

To contact the reporters on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net; Emma O’Brien in New York at eobrien6@bloomberg.net

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

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