Japanese Stock Futures, Australian Index Advance on Speculation About Fed

Japanese stock futures and Australian shares gained on speculation the Federal Reserve will inject more money into the U.S. economy, boosting confidence in a global recovery.

American depositary receipts of Canon Inc., the world’s biggest camera maker, climbed 0.6 percent from the closing share price in Tokyo. Those of Toyota Motor Corp., the world’s largest carmaker, advanced 0.7 percent. BHP Billiton Ltd., the world’s No. 1 mining company and Australia’s biggest oil producer, rose 1 percent today in Sydney after commodity prices advanced.

“The market basically has excess liquidity and the money is moving into commodities and liquid stocks,” said Mitsushige Akino, who oversees about $450 million in assets in Tokyo at Ichiyoshi Investment Management Co. “The global economy is on a track of recovery and double-dip worries have receded.”

Futures on Japan’s Nikkei 225 Stock Average expiring in December closed at 9,475 in Chicago yesterday, compared with 9,375 in Singapore. They were bid in the pre-market at 9,480 in Osaka, Japan, at 8:05 a.m. local time. Australia’s S&P/ASX 200 Index rose 0.5 percent today. New Zealand’s NZX 50 Index gained 0.5 percent in Wellington.

Futures on the Standard & Poor’s 500 Index rose 0.2 percent. The index gained 1.1 percent yesterday in New York on higher- than-estimated results at Boeing Co. and Yahoo! Inc. and speculation the Federal Reserve will inject more money into the economy.

U.S. Growth

The gauge maintained gains after the Fed said in its Beige Book business survey that U.S. economic growth showed little sign of accelerating last month, fueling speculation it will boost purchases of government debt.

The dollar declined to a 15-year low against the yen and fell the most versus the euro since July as a Federal Reserve regional survey showed the U.S. economy expanded in September at a “modest pace.”

The yen appreciated to as high as 80.85 against the dollar around midnight yesterday in Tokyo, compared with 81.38 at the close of stock trading yesterday. The currency traded at 81.05 as of 7:50 a.m. today. Against the euro, Japan’s currency weakened to as low as 113.35 today from 112.04, increasing overseas income at Japanese companies when repatriated.

Crude Oil

Crude oil for November delivery rose 2.9 percent to settle at $81.77 a barrel yesterday in New York, the biggest gain since Sept. 10, as the dollar resumed a slide, enhancing the appeal of commodities as alternative investments.

The London Metal Exchange Index of six metals including aluminum and copper advanced 1.2 percent yesterday, the steepest gain since Oct. 8.

The MSCI Asia Pacific Index has increased 7.8 percent in 2010, compared with gains of 5.7 percent by the S&P 500 and 4.8 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 14.3 times estimated earnings, compared with 14 times for the S&P and 12.3 times for the Stoxx.