Japan Stock Futures Rise as Spain Asks for Bank Bailout
Japanese stock futures rose after Spain asked for a bailout of as much as 100 billion euros ($126 billion) to help shore up its banks, boosting optimism that Europe’s credit crisis may ease.
American depositary receipts of Kyocera Corp. (6971), a Japanese electronics maker that gets more than 15 percent of its sales in Europe, gained 1.4 percent from the closing share price in Tokyo. Komatsu Ltd. (6301), a construction machinery maker that gets 14 percent of its sales from China, rose 0.8 percent after China’s exports climbed in May. Chugoku Electric Power Co. (9504) may be active after its equity rating was raised to “neutral” by Mitsubishi UFJ Morgan Stanley Securities Co.
“Concerns about the effect of a credit crunch on Spain’s economy are easing,” said Hideyuki Ishiguro, assistant manager of investment strategy at Okasan Securities Co. in Tokyo. “One hundred billion Euro is probably enough to take care of the problem in the banking system.”
Futures on Japan’s Nikkei 225 Stock Average expiring in September closed at 8,515 in Chicago on June 8, up from 8,430 in Osaka, Japan. They were bid in the pre-market at 8,630 in Osaka at 8:05 a.m. local time. Australian markets are closed today for a national holiday. New Zealand’s NZX 50 Index added 0.5 percent in Wellington.
Futures on the Standard & Poor’s 500 Index climbed 0.9 percent today. The gauge advanced 0.8 percent on June 8 on optimism that weekend discussions among European finance officials may result in a bailout for Spain to shore up its lenders.
Spain’s Prime Minister Mariano Rajoy, who as recently as May 28 said he wouldn’t seek a bailout, characterized the deal as a credit line for banks and an endorsement of his policies. He spoke to reporters on June 10 in Madrid before flying to Gdansk, Poland, for a Euro 2012 soccer match between the national team and Italy.
Spain is the fourth euro member to seek a bailout since the start of the region’s debt crisis more than two years ago.
The European currency rose against the yen on speculation Spain may receive aid to ensure access to capital markets and amid indications the shared currency’s decline was too rapid.
The euro strengthened to as high as 100.95 yen today in Tokyo, compared with 99.16 yen on June 8. The dollar appreciated to 79.83 yen from 79.23 yen, boosting the value of some overseas income at Japanese companies when repatriated.
Japanese companies with businesses in China may also gain after China’s May imports increased at more than double the pace analysts estimated. Imports rose 12.7 percent compared with estimates for a 5.5 percent gain, the Beijing-based customs bureau said on June 10.
The Bloomberg China-US 55 Index (CH55BN) of the most-traded Chinese equities in the U.S last week gained 3.5 percent to 90.27 in New York last week, snapping a five-seek slump, after the People’s Bank of China on June 7 reduced benchmark interest rates for the first time since 2008 to bolster growth in the world’s second- largest economy.
The MSCI Asia Pacific Index (MXAP) dropped 2.1 percent this year through June 8, compared with a 5.4 percent advance by the S&P 500 and a 1.1 percent drop by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 1.2 times book value, compared with 2.1 times for the S&P 500 and 1.3 times for the Stoxx 600, according to Bloomberg data. A number below 1 means companies can be bought for less than value of their assets.
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