Australia Stocks, Japan Futures Rise on Metals, Policy Optimism

By Masaki Kondo

Feb. 9 (Bloomberg) -- Australia shares and Japanese stock futures rose on expectations the highest unemployment rate in 17 years will push the U.S. government to expedite the recovery of the world’s biggest economy.

BHP Billiton Ltd. climbed 3.6 percent in Sydney after metal prices rose in London. U.S.-traded receipts of Canon Inc., which gets a third of its sales from the Americas, advanced 3.2 percent from the closing price in Tokyo on optimism Congress will soon pass an economic stimulus plan and as the yen weakened. Nomura Holdings Inc., Japan’s largest securities firm, lost 5.3 percent after saying it may sell new shares to replenish capital.

“Governments and central banks have implemented a number of measures that have started taking effect,” said Chisato Haganuma, a Tokyo-based strategist at Nomura Securities Co., said in an interview with Bloomberg Television. “The rising unemployment rate is negative, but it shows companies are making efforts to reduce costs.”

Australia’s S&P/ASX 200 Index rose 1.6 percent to 3,523.80 as of 10:08 a.m. in Sydney. New Zealand’s NZX 50 Index added 1.2 percent to 2,805.30 in Wellington. In New York, the Standard & Poor’s 500 Index climbed 2.7 percent on Feb. 6 to the highest level since Jan. 28.

Nikkei 225 Stock Average futures expiring in March closed at 8,340 in Chicago, 3.5 percent higher than 8,060 in Osaka and 3.3 percent up from 8,075 in Singapore. The Bank of New York Mellon Asia ADR Price Index, which tracks American depositary receipts of the region’s companies, gained 3.3 percent.

The MSCI Asia Pacific Index lost a record 43 percent last year as the world’s biggest economies sank into recession, and the gauge has fallen another 7 percent in 2009.

Metal Prices

A measure of six primary metals traded in London climbed 4.2 percent on Feb. 6, capping a 9.2 percent gain for the week, the biggest weekly advance since the period ended Jan. 2.

The U.S. jobless rate jumped to 7.6 percent last month from 7.2 percent in January, the Labor Department reported on Feb. 6. The Senate delayed a vote on a stimulus package after lawmakers failed to agree on how to cut the more than $900 billion measure. The House has already passed an $819 billion version of the plan.

The yen weakened against the dollar to as much as 92.06 from 90.91 at the close of stock trading in Tokyo on Feb. 6. A weaker Japanese currency increases the value of overseas sales for Japanese companies. Every 1 yen decline against the dollar boosts Toyota’s annual operating profit by 40 billion yen ($436 million).

Toyota Projection

On Feb. 6, Toyota, the world’s biggest automaker, tripled its operating loss forecast for this fiscal year ending March 31 as a stronger yen eats into profit and demand tumbles in the U.S. and Japan. Tatsuo Yoshida, an analyst for UBS AG, said Toyota’s loss will reach 550 billion yen for the year ending March 2010. Toyota’s stock receipts rose 3.3 percent in New York.

Nomura may sell common stocks valued at as much as 300 billion yen from Feb. 19, the company said on Feb. 6 after markets shut. The brokerage posted a record loss of 343 billion yen in the three months to Dec. 31.

To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net.