Current stock effort will not repeat the old way

Current stock effort will not repeat the old way

Japanese and Australian stock futures were little changed after a report that China has no plans to introduce large-scale stimulus, as it did during the global financial crisis, offset data signaling the American machinery housing market has stabilized.
American depositary receipts of Sharp Corp. (6753), Japan’s largest maker of liquid-crystal displays that gets a fifth of sales in China, fell 1.4 percent from the closing share price in Tokyo. ADRs of Kyocera Corp., a Japanese electronic equipment maker that gets 14 percent of its sales in the U.S., climbed 0.3 percent. Renesas Electronics Corp. (6723) may be active after the regulator in Japan restricted short-selling in the shares from today, following a two-day 25 percent slump.
Home prices in 20 U.S. cities fell 2.6 percent in the 12 months ended in March, the smallest decrease since December 2010, according to an S&P/Case-Shiller index of property values released yesterday.
Another report showed confidence among U.S. consumers unexpectedly fell in May to the lowest level in four months as optimism about employment prospects faded. The Conference Board’s index decreased to 64.9 this month from a revised 68.7 in April, figures from the New York-based private research group showed.
Concern is now growing that Spanish lenders will need more financial support to weather the crisis in the debt-stricken region.
Declines in equities this month dragged the average price of stocks on the MSCI Asia Pacific Index (MXAP) to 11.7 times estimated earnings yesterday, compared with a multiple of 12.7 for the S&P 500 and 10.1 for the Stoxx Europe 600 Index.
China has no plan to introduce stimulus measures on the scale deployed during the global financial crisis to counter this year’s economic slowdown, the official Xinhua News Agency reported.
“The Chinese government’s intention is very clear: It will not roll out another massive stimulus plan to seek high economic growth,” Xinhua said yesterday in a Chinese-language article on economic policy, without attributing the information. “The current efforts for stabilizing growth will not repeat the old way of three years ago.”
The Bloomberg China-US Equity Index of the most-traded Chinese companies in the U.S. rose 3.2 percent to 93.50 yesterday in New York, the biggest gain since Jan. 3.
Brent oil for July settlement fell 43 cents, or 0.4 percent, to $106.68 a barrel on the London-based ICE Futures Europe exchange.
The London Metal Exchange Index of prices for six industrial metals including copper and aluminum lost 0.3 percent yesterday. The Thomson Reuters/Jefferies CRB Index of raw materials declined 0.8 percent.