Tokyo bureau---Catherine (medium)
>> stocks highly reverend to a recovery in the u.s. are ones to watch in asia this morning. catherine yang is in our tokyo bureau with more.
>> the pickup in business spending on equipment and software in the u.s. may help shares of asian exporters like japan’s canon and south korean’s samsung electronics. nikkei futures expiring in september in chicago closed higher compared with both singapore and osaka, an indication traders expect stocks to open higher when tokyo trading begins t bank of new york a.d.r. index rose and the bank of new york japan a.d.r. index gained. canon gets 70% of its sales outside of japan. a recovery in the u.s. economy may mean a pickup in sales for samsung electronics computer memory chips. martin schultz who manages $28 billion at national city investment expects the u.s. recovery to benefit asian exporters.
>> the u.s. economy is pulling the global economic recovery and in that perspective we like the asian stocks . we are overweight at armada. we are currently at about 40% overweight our asian stocks relative to the benchmark.
>> schultz rerenlt bought shares in taiwan’s haun hai position. analysts say production for july rose problem ily.2%. stephane rheinwald is expecting positive numbers. he adds these numbers will have a positive impact on japanese stocks . we have demand outside japan that may not be enough to boost jobs or consumer spending. they expect jobless rates to remain the same at 5.3% in july.
>> toshiba announced they may raise their earnings outlook. they make a lot of notebooks in japan. what are the details.
>> toshiba said after the market closed in tokyo that it may see a gain from the sale of the securities it owns. it’s expecting a gain of $183 million, and as a result of this the company may raise its earnings outlook. some fund managers aren’t as excited. we have a manager of $2.5 billion for hsbc asset management in japan and he says it’s a sign of toshiba’s desperation to make its financials look good.
>> we’ll watch as well, global coverage continues with bloomberg international right after this program 10 minutes from now. cathy yang will be with us from montreal cast asia at 7:00. smith and nephew, europe’s largest maker of hospital supplies and medical implants says it’s purchase offer for centerpulse expired. back earlier smith & nephew said it wouldn’t raise its $2.45 billion offer. zimmer which offered $3.1 billion for centerpulse will become the world’s largest manufacturer of joint implants surpassing johnson & johnson and stryker. schering said it began the first phase of trials on a radiation free breast cancer test. this test uses products developed by the german drugmaker and fuji photo film. a radiation free exam may reduce the number of biopsies on benign lumps. schering expects results on the study by the middle of next year. a.d.r.’s have fallen 27% the past year on the new york stock exchange, but they were up 4% in the latest trading. starting next week pharmacists in the forget netherlands will fill prescriptions for cannabis. the. two grades of marijuana may be prescribed to patients suffering from cancer, aids or multiple sclerosis. cannabis has been found to relieve nausea produced by chemotherapy and reduce the muscular pain and stiffness of ms. still to come, spam wars are heating up.
