European equity futures dropped, while Asian stocks fell for a fifth day as the yen erased losses after the Bank of Japan kept monetary policy unchanged and China reported an unexpected trade surplus. Gold climbed.
Euro Stoxx 50 Index futures decreased 1.5 percent as of 7:30 a.m. in London, indicating stocks will resume trading weaker after European markets were closed yesterday for the Easter holiday. Standard & Poor’s 500 Index futures gained 0.3 percent after the gauge declined 1.1 percent yesterday. The MSCI Asia Pacific Index (MXAP) lost 0.2 percent. The yen gained 0.2 percent, erasing losses against the dollar. Gold climbed for the fourth day, while oil slid 0.2 percent.
On the first day this quarter when all Asian markets were trading, the BoJ kept its key interest rate unchanged and no policy maker proposed extra stimulus. China reported a trade surplus last month as import growth trailed forecasts, underscoring risks of a deeper slowdown. Federal Reserve Chairman Ben S. Bernanke said yesterday that the U.S. economy was still “far from having fully recovered” from the crisis.
“Investors are still fearful that growth isn’t strong enough and if there isn’t going to be more stimulus, then that’s negative,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which has almost $100 billion under management. “Investors are saying the recovery is fragile, so either growth picks up or we get more stimulus.” Asia Stocks More shares fell than rose on the MSCI Asia Pacific Index. Toyota Motor Corp. advanced for the first time in nine trading sessions after Nomura Holdings Inc. said a weaker yen and higher sales in the U.S. will boost the carmaker’s profit. Hong Kong’s Hang Seng (HSI) Index dropped 1.1 percent, heading for a two-month low, after a four-day weekend during which the U.S. reported fewer jobs than forecast were created in March and China said inflation accelerated. The Shanghai Composite Index slid 0.6 percent after government data showed export growth halved in March. Exports rose 8.9 percent from the previous year, compared with 18.4 percent growth the month before. The yen reversed early losses, trading at 106.73 against the euro and 81.34 per dollar. The European currency gained 0.1 percent to $1.3132 before France auctions 7.8 billion euros ($10.2 billion) of bills today. Italy will sell 11 billion euros of debt tomorrow. |
