Chinese Index Futures Retreat After MSCI Delay; Asian Bonds Drop

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Chinese stock-index futures dropped after MSCI Inc. held off from adding mainland stocks to its benchmark indexes. Asian bonds tracked a selloff in the U.S. and Europe, while oil rose a second day.

SGX FTSE China A50 Index futures expiring this month fell 1.2 percent at 10:07 a.m. Tokyo time. Yields on Japanese government notes due in a decade climbed four basis points to 0.49 percent, as rates on similar maturity Australian and New Zealand debt rose at least six basis points. The MSCI Asia Pacific Index added 0.1 percent, with Japan’s Topix index rebounding from a three-week low. U.S. index futures climbed 0.1 percent. Oil in New York rose 0.8 percent.

MSCI said China still needs to improve market accessibility and address concerns about the ownership status of mainland shares before they’re eligible for global equity gauges. Bets the Federal Reserve is edging closer to raising U.S. interest rates this year fueled Treasury losses Tuesday, while signs of a pickup in euro-area growth sent most European bonds lower. Oil industry data pointed to a sixth week of declines in American crude inventories.

Yields on Australian 10-year bonds jumped 10 basis points, or 0.10 percentage point, to 3.06 percent, while New Zealand rates climbed six basis points to 3.92 percent for their seventh increase eight days.

Source : Bloomberg

Asia Stocks Swing as Energy Producers Rise, Consumer Shares Fall

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Asian stocks swung between gains and losses as energy companies advanced and consumer shares slid.

The MSCI Asia Pacific Index was little changed at 146.12 as of 9:16 a.m. in Tokyo after rising as much as 0.1 percent and falling less than 0.1 percent. West Texas Intermediate crude surged 3.4 percent on Tuesday as shale producers curbed output. Yields on 10-year Australian government notes climbed by 10 basis points after U.S. and European debt resumed losses.

MSCI Inc. said mainland Chinese stocks will probably be added to its indexes once market access issues are resolved, deferring a move that could lure billions of dollars to the world’s best-performing market.

Japan’s Topix index slid 0.1 percent. South Korea’s Kospi index added 0.4 percent. New Zealand’s NZX 50 Index slid 0.6 percent, while Australia’s S&P/ASX 200 Index lost 0.1 percent. Markets in China and Hong Kong have yet to open.

Source : Bloomberg

Japan Stocks Rise First Time in Four Days as Machine Orders Jump

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Most Japanese stocks rose, with the Topix index poised to end a three-day drop, as a report showed machine orders unexpectedly jumped in April. Mining and real-estate shares led the advance.

The Topix index gained 0.1 percent to 1,635.88 as of 9:01 a.m. in Tokyo, with two shares rising for each that fell. The Nikkei 225 Stock Average added 0.1 percent to 20,123.70. The yen traded at 124.41 per dollar after strengthening for two days. The Topix surged 16 percent this year through Tuesday, compared with a 2.5 percent gain by the MSCI World Index.

E-mini futures on the Standard & Poor’s 500 Index added 0.1 percent. The underlying gauge of U.S. equities closed little changed on Tuesday as banks rallied amid higher bond yields, while airlines weighed on transportation shares and technology companies slipped.

Reports Wednesday showed Japanese machinery orders rose 3.8 percent in April from March. Economists had forecast a 2.1 percent drop. Producer prices added 0.3 percent in May from a month earlier.

Source : Bloomberg

Oil Holds Near $58 as U.S. Crude Stockpile Glut Seen Shrinking

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Oil held near $58 after falling a third time in four days before U.S. government data forecast to show the country’s crude supplies shrank for a sixth week.

Futures gained as much as 0.4 percent in New York. Crude inventories probably fell by 1.45 million barrels through the week ended June 5, according to a Bloomberg survey before an Energy Information Administration report Wednesday. OPEC, which maintained its production quota at a June 5 meeting, is unlikely to cut supply until the shale threat wanes, according to Hindustan Petroleum Corp.’s refineries director B.K. Namdeo.

Oil’s recovery from a six-year low has faltered near $60 a barrel amid speculation the global glut will persist as rising prices spur a rebound in U.S. output. The nation’s crude stockpiles are almost 100 million barrels above the five-year average for this time of the year, according to the EIA.

West Texas Intermediate for July delivery rose as much as 24 cents to $58.38 a barrel in electronic trading on the New York Mercantile Exchange and was at $58.32 at 10:14 a.m. Sydney time. The contract fell 1.7 percent to $58.14 on Monday. The volume of all futures traded was about 88 percent below the 100-day average. Prices have increased 9 percent this year.

Brent for July settlement was 14 cents higher at $62.83 a barrel on the London-based ICE Futures Europe exchange. The contract slid 62 cents, or 1 percent, to $62.69 a barrel on Monday. The European benchmark crude traded at a premium of $4.51 to WTI.

Source : Bloomberg