Japanese and Australian stock futures fell on concern that European government finances are worsening and as metal prices dropped.
American depositary receipts of Sharp Corp., a Japanese maker of liquid-crystal displays that gets 14 percent of its revenue in Europe, sank 2.2 percent from the closing share price in Tokyo. Those of Mitsubishi Corp., a Japanese commodities trader, dropped 1.9 percent. ADRs of BHP Billiton Ltd., the world’s largest mining company, retreated 0.5 percent from the closing share price in Sydney.
“Concerns about the global economic outlook haven’t cleared,” said Yasushi Noguchi, a strategist in Tokyo at SMBC Friend Securities Co. “There are still issues related to Europe’s debt.”
Futures on Japan’s Nikkei 225 Stock Average expiring in December closed at 9,510 in Chicago yesterday, compared with 9,535 in Singapore. They were bid in the pre-market at 9,510 in Osaka, Japan, at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index lost 0.4 percent today. New Zealand’s NZX 50 Index slid 0.1 percent in Wellington.
Futures on the Standard & Poor’s 500 Index were little changed. The index dropped 0.6 percent yesterday in New York. Financial companies led the decline as investors speculated that merger talks between M&T Bank Corp. and Banco Santander SA broke down and yield spreads showed perceptions of Ireland and Portugal’s creditworthiness are deteriorating.
Record Irish Spreads
The extra yield investors demanded to buy Irish 10-year bonds instead of Germany’s bunds widened to a record yesterday. Anglo Irish Bank Corp.’s senior debt was cut to the lowest investment grade by Moody’s Investors Service, which said it may reduce the rating for the Dublin-based firm to junk unless the government guarantees bondholders against losses.
The MSCI Asia Pacific Index has risen 5.5 percent in 2010, compared with gains of 2.4 percent by the S&P 500 and 3.6 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 14.3 times estimated earnings, compared with 13.7 times for the S&P 500 and 12 times for the Stoxx 600.
The London Metal Exchange Index of six industrial metals, including aluminum and copper, lost 0.6 percent yesterday, its first decline in four days. Copper futures for December delivery sank 0.6 percent at 1:24 p.m. on the Comex in New York yesterday.
The Bank of Japan may discuss more steps to ease monetary policy at a meeting on Oct. 4-5, Nikkei English News reported today, without saying how it obtained the information.
Takefuji Corp., Japan’s third-largest consumer lender, will file for bankruptcy protection today, according to a person with direct knowledge of the matter.
Also in Japan, about 1,400 companies go ex-dividend today, according to data compiled by Bloomberg. That means investors who buy the stocks won’t be entitled to receive dividends for April-September. That will erase about 63 points from the Nikkei 225, according to SMBC Friend Securities.
To contact the reporter for this story: Akiko Ikeda in Tokyo at iakiko@bloomberg.net.
To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net.
http://jodnet.blogspot.com
American depositary receipts of Sharp Corp., a Japanese maker of liquid-crystal displays that gets 14 percent of its revenue in Europe, sank 2.2 percent from the closing share price in Tokyo. Those of Mitsubishi Corp., a Japanese commodities trader, dropped 1.9 percent. ADRs of BHP Billiton Ltd., the world’s largest mining company, retreated 0.5 percent from the closing share price in Sydney.
“Concerns about the global economic outlook haven’t cleared,” said Yasushi Noguchi, a strategist in Tokyo at SMBC Friend Securities Co. “There are still issues related to Europe’s debt.”
Futures on Japan’s Nikkei 225 Stock Average expiring in December closed at 9,510 in Chicago yesterday, compared with 9,535 in Singapore. They were bid in the pre-market at 9,510 in Osaka, Japan, at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index lost 0.4 percent today. New Zealand’s NZX 50 Index slid 0.1 percent in Wellington.
Futures on the Standard & Poor’s 500 Index were little changed. The index dropped 0.6 percent yesterday in New York. Financial companies led the decline as investors speculated that merger talks between M&T Bank Corp. and Banco Santander SA broke down and yield spreads showed perceptions of Ireland and Portugal’s creditworthiness are deteriorating.
Record Irish Spreads
The extra yield investors demanded to buy Irish 10-year bonds instead of Germany’s bunds widened to a record yesterday. Anglo Irish Bank Corp.’s senior debt was cut to the lowest investment grade by Moody’s Investors Service, which said it may reduce the rating for the Dublin-based firm to junk unless the government guarantees bondholders against losses.
The MSCI Asia Pacific Index has risen 5.5 percent in 2010, compared with gains of 2.4 percent by the S&P 500 and 3.6 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 14.3 times estimated earnings, compared with 13.7 times for the S&P 500 and 12 times for the Stoxx 600.
The London Metal Exchange Index of six industrial metals, including aluminum and copper, lost 0.6 percent yesterday, its first decline in four days. Copper futures for December delivery sank 0.6 percent at 1:24 p.m. on the Comex in New York yesterday.
The Bank of Japan may discuss more steps to ease monetary policy at a meeting on Oct. 4-5, Nikkei English News reported today, without saying how it obtained the information.
Takefuji Corp., Japan’s third-largest consumer lender, will file for bankruptcy protection today, according to a person with direct knowledge of the matter.
Also in Japan, about 1,400 companies go ex-dividend today, according to data compiled by Bloomberg. That means investors who buy the stocks won’t be entitled to receive dividends for April-September. That will erase about 63 points from the Nikkei 225, according to SMBC Friend Securities.
To contact the reporter for this story: Akiko Ikeda in Tokyo at iakiko@bloomberg.net.
To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net.
http://jodnet.blogspot.com
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