Japan Stock Futures Gain Before Tankan Manufacturing Survey
Japanese stock futures rose as the yen weakened ahead of a Tankan survey that is forecast to show positive manufacturers’ confidence for the first time in seven quarters. Australian futures fell before Chinese factory data.
American Depositary Receipts of Canon Inc. (7751), a camera maker that gets 80 percent of sales abroad, gained 1 percent as the yen declined against the dollar, boosting the earnings outlook for Japanese exporters. ADRs of carmaker Nissan Motor Co. advanced 0.5 percent. Those of Rio Tinto Group, the world’s No. 2 mining company, fell 0.8 percent in New York on June 28.
Futures on Japan’s Nikkei 225 Stock Average (NKY) expiring in September closed at 13,700 in Chicago on June 28, up from 13,680 at the close in Osaka, Japan. They were bid in the pre-market at 13,750 in Osaka at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index retreated 0.1 percent and New Zealand’s NZX 50 Index fell 0.3 percent. Markets in Hong Kong and Thailand are closed for holidays.
“The BOJ’s June Tankan survey will be a key focus,” said Michael Kurtz, Hong Kong-based head of global equity strategy at Nomura Holdings Inc., Japan’s largest brokerage. “Key data continue to show a reflationary demand recovery in progress.”
The MSCI Asia Pacific Index, the benchmark regional equities gauge, last week posted its biggest increase since April amid signs the Japanese and U.S. economies are improving. Chinese stocks rebounded on June 28 on optimism the recent rout amid concerns of a Chinese cash crunch was overdone.
Futures on the Standard & Poor’s 500 Index were little changed, indicating the U.S. benchmark will add to last week’s gains as economic data topped estimates and comments by Federal Reserve officials eased concerns over plans to reduce stimulus.
The Bank of Japan’s quarterly Tankan report may show that the nation’s businesses turned optimistic in the second quarter. The sentiment gauge for large manufacturers probably rose to 3 from minus 8 in the first quarter, according to the median estimate of economists in a Bloomberg News survey. A positive number means optimists outnumber pessimists.
Growth in China has held below 8 percent for the past four quarters, the first time that has happened in at least 20 years. The World Bank lowered its 2013 expansion forecast for the nation last month to 7.7 percent from 8.4 percent previously. A government gauge of manufacturing probably fell to the least in four months, according to a Bloomberg survey of economists.
The Bloomberg China-US Equity Index of the most-traded Chinese shares in the U.S. rose 0.8 percent in New York June 28.
The MSCI Asia Pacific Index has retreated 9.6 percent from the closing level on May 20, which was the highest since June 2008. That left the gauge trading at 12.8 times average estimated earnings compared with 14.6 for the Standard & Poor’s 500 Index (SPX) and 12.6 times for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
The yen fell 0.3 percent to 99.42 to dollar as of 7:45 a.m. in Tokyo.
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