BLBG: Japanese Stock Futures Fall; Australian Gold Producers Decline
By Akiko Ikeda and Satoshi Kawano
March 31 (Bloomberg) -- Japanese stock futures fell on speculation gains that drove benchmark indexes to the highest levels since October 2008 were excessive given the outlook for earnings. Australian gold producers declined.
U.S.-traded receipts of Sumitomo Mitsui Financial Group Inc., Japan’s second-largest publicly traded bank, dropped 1.1 percent from the closing share price in Tokyo following yesterday’s 2 percent gain. Hitachi Ltd., a maker of products ranging from washing machines to nuclear reactors, lost 0.3 percent after a gain of 1.2 percent yesterday. Newcrest Mining Ltd., Australia’s largest gold producer, lost 0.8 percent as prices of the metal dropped.
“Investors may sell shares to lock in profits as stocks have traded at a relatively high level,” said Hiroichi Nishi, an equities manager at Nikko Cordial Securities Inc.
Japan’s Nikkei 225 Stock Average rose 1 percent yesterday to its highest level since October 2008. The price of stocks in the gauge climbed to 39 times estimated earnings on average, the highest level among equity markets worldwide, according to data compiled by Bloomberg.
The 25-day Toraku index, a measure of daily stock winners and losers in Tokyo, reached 137 yesterday. A level of more than 120 suggests to some investors the market is overheating.
Futures on the Nikkei expiring in June closed at 11,115 in Chicago yesterday, compared with 11,120 in Singapore. They were bid in the pre-market at 11,100 in Osaka, Japan, at 8:05 a.m. local time today. Australia’s S&P/ASX 200 Index dropped 0.1 percent at the open in Sydney today. New Zealand’s NZX 50 Index was unchanged at 3,249.65 in Wellington.
S&P 500, Gold
In New York, the Standard & Poor’s 500 Index was little changed yesterday as consumer confidence increased more than projected and home prices unexpectedly rose in January while Standard & Poor’s cut Iceland’s credit rating and Greece failed to sell half the 12-year bonds it offered.
Gold futures for June delivery fell 0.5 percent in New York, halting a three-session rally.
The MSCI Asia Pacific Index has gained 4.5 percent this year, compared with increases of 5.2 percent for the S&P 500 and 3.9 percent for the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 19 times estimated earnings, compared with 15 times for the S&P 500 and 13 times for the Stoxx 600.
To contact the reporters for this story: Akiko Ikeda in Tokyo at iakiko@bloomberg.net; Satoshi Kawano in Tokyo at skawano1@bloomberg.net.
