Japan Futures Drop as Fed Sinks U.S. Stocks; Aussie Slips

Japanese and Australian equity futures followed U.S. stocks lower as the dollar surged after Federal Reserve Chairman Ben S. Bernanke said bond purchases may be reduced later this year should risks to the U.S. economy abate. Australia’s currency slumped while oil slid.

Futures on Japan’s Nikkei 225 Stock Average fell 0.4 percent to 13,160 in Chicago and traded at 13,200 by 3 a.m. in Osaka, after closing at 13,260 yesterday. Contracts on Australia’s S&P/ASX 200 Index slid 1.1 percent. Standard & Poor’s 500 Index futures dropped 0.1 percent by 7:39 a.m. in Tokyo. The gauge lost 1.4 percent in New York to erase most of a two-day rally as the dollar jumped against 13 of 16 major peers. The Aussie sank to the weakest level on a closing basis since September 2010, while gold futures declined.