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Japan Futures, Australia Stocks Rise as Greek Concerns Wane

By Akiko Ikeda and Toshiro Hasegawa

March 1 (Bloomberg) -- Japanese stockfutures and Australian shares rose as commodity prices climbed and European Union governments prepare a possible rescue package for Greece.

U.S.-traded receipts of Sharp Corp., Japan’s biggest maker of liquid-crystal displays, gained 0.5 percent from the closing share price in Tokyo. Those of Mitsubishi UFJ Financial Group Inc., Japan’s largest bank by market value, climbed 1.6 percent as its investment recommendation was lifted to “overweight” from “neutral” at JPMorgan Chase & Co. BHP Billiton Ltd., the world’s biggest mining company, rose 0.8 percent as copper futures jumped after an earthquake in Chile.

“Risks for Greece are waning as the government focuses on financial reconstruction,” said Tomochika Kitaoka, a senior strategist at Mizuho Securities Co. in Tokyo. “Exporters, which are sensitive to currency moves, should react positively.”

Futures on Japan’s Nikkei 225 Stock Average expiring in March closed at 10,160 in Chicago on Feb. 26, compared with 10,105 in Singapore. They were bid in the pre-market at 10,150 in Osaka, Japan, at 8:05 a.m. local time. Australia’s S&P/ASX 200 Index gained 0.7 percent in Sydney today. New Zealand’s NZX 50 Index rose 0.4 percent in Wellington.

U.S. Economy

In New York, the Standard & Poor’s 500 Index rose 0.1 percent to 1,104.49 on Feb. 26. The U.S. economy expanded at a 5.9 percent annual rate in the fourth quarter, more than the government reported in January. The Institute for Supply Management-Chicago Inc. said its business barometer climbed to 62.6 from 61.5 in January, a bigger increase than economists forecast and the highest since 2005.

German lawmakers said euro-area officials are crafting a plan to grant Greece about 25 billion euros ($34 billion) in aid should the need arise, possibly by using state-owned lenders such as Germany’s KfW Group to buy its debt.

Greece’s government continues to focus on implementing its three-year budget plan and will consider additional measures if deemed necessary after an evaluation, a government spokesman said.

The London Metal Exchange Index, a measure of six metals including copper and zinc, advanced 2.8 percent on Feb. 26. Copper futures due March 10 jumped 4.9 percent today. Crude oil for April delivery increased $1.49 to settle at $79.66 a barrel in New York.

Upgrades on Banks

The MSCI Asia Pacific Index fell 2 percent this year to Feb. 26, while the S&P 500 in the U.S. dropped 1 percent and Europe’s Dow Jones Stoxx 600 Index slumped 3.2 percent. Stocks in the benchmark are valued at 48 times estimated earnings, compared with 18 times for the S&P and 25 times for the Stoxx.

Tokyo-based JPMorgan analyst Katsuhito Sasajima raised his ratings on Japanese banks including Mitsubishi UFJ, Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. to “overweight” from “neutral.”

China Mobile Ltd. or its state-owned parent may buy 20 percent of Shanghai Pudong Development Bank Co. for about 40 billion yuan ($5.9 billion), according to a Guotai Junan Securities Co. note that didn’t cite anyone.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ae5pp8QUWL0U&pos=4