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(Bloomberg) — Stock futures signaled a rebound from Monday’s Greece-inspired equity losses, with contracts on Chinese shares rising as the government strives to quell gyrations in its markets. New Zealand’s dollar retreated, while oil rallied after its steepest slump in five months.

Futures on equity gauges from Japan to Australia rose at least 0.2 percent in recent trading, and contracts on the Standard & Poor’s 500 Index were up 0.2 percent by 8:43 a.m. in Tokyo following a 0.4 percent retreat in the U.S. measure. FTSE China A50 Index futures added 0.6 percent in Singapore. The kiwi headed for its longest run of losses since 2012 on the prospects interest rates will be cut further. U.S. crude rose after tumbling 7.7 percent Monday on global-demand concerns.
The initial shock waves that hit markets after Greece’s decision to call a referendum on austerity terms had dissipated into a ripple by the end of Monday trading, as investors speculated the crisis wouldn’t spread beyond the nation’s borders. Greece is now under pressure to come up with a plan to stay in the euro. China has cut rates and suspended initial share sales the past two weeks in a bid to stem a stock rout that has wiped out more than $3 trillion in market value.

“Moves were relatively muted, implying that markets remain confident that the ECB has the necessary policy tools at its disposal to limit the risk of contagion,” Cameron Bagrie, chief economist in Wellington at ANZ Bank New Zealand Ltd., wrote in a client note, referring to the European Central Bank. “The past week has seen the kitchen sink thrown at Chinese stock markets. Those are short-term fixes as opposed to addressing the fundamental problems. There is still a deleveraging process to go through, which risks tightening market liquidity conditions.”

China Moves

Futures on China’s CSI 300 Index were also up, rising 0.8 percent in most recent trading as Chinese stocks in the U.S. followed the slump in the Hang Seng China Enterprises Index. The Bloomberg China-US Equity Index lost 5.1 percent Monday, the most since September 2011, amid concern the latest measures won’t stem the selloff in mainland markets.
Contracts on the Enterprises index — a gauge of mainland stocks traded in Hong Kong that lost 3 percent Monday — climbed 0.5 percent with futures on the broader Hang Seng Index. Kospi index futures in Seoul rose 0.3 percent before Samsung Electronics Co., the index’s biggest member, reported lower- than-estimated second-quarter operating profit Tuesday.
Futures on Australia’s S&P/ASX 200 Index added 0.4 percent after the gauge sank 1.1 percent Monday amid a plunge in oil and industrial metals.

Kiwi Cuts

The Australian dollar dropped 0.2 percent to 74.86 U.S. cents, close to a more-than six-year low reached Monday. The country’s central bank is projected to keep its benchmark interest rate at a record-low 2 percent Tuesday, after two reductions this year.
The kiwi lost 0.2 percent to 66.73 U.S. cents, headed for an eighth day of declines. The currency is near its weakest level since 2010 as economists predict further cuts to the official cash rate. Borrowing costs will be reduced twice more to 2.75 percent, according to the New Zealand Institute of Economic Research. The rate was cut by 25 basis points, or 0.25 percentage point, to 3.25 percent last month.
The euro was little changed at $1.1050 after ending Monday down 0.5 percent, almost halving a drop of as much as 1.3 percent against the greenback.

Greece Meeting

Euro-area finance ministers meet Tuesday for an emergency meeting after German Chancellor Angela Merkel said “time is running out” for Greece to come up with a plan to stay in the currency union. The European Central Bank maintained the level of Emergency Liquidity Assistance available to Greece, while tightening terms related to collateral. Greek banks remain shut through Wednesday.
“I think it’s going to be hard to get any real traction until we get some type of clarity,” said Walter Todd, who oversees about $1 billion as a chief investment officer for Greenwood Capital Associates LLC in Greenwood, South Carolina. “You can’t escape the noise created by this situation. Our opinion has been and remains at this point that Greece is more noise than anything else.”
The yen, regarded along with Treasuries as a haven asset, was steady at 122.62 per dollar after gaining 0.2 percent on Monday. Futures on Japan’s Nikkei 225 Stock Average, which typically move at odds with the currency, were bid for 20,290 in the Osaka pre-market, from 20,200 at their close Monday. Yen- denominated contracts gained 0.1 percent to 20,300.

Oil Bounce

As well as the Australian rate review, Asian markets will see inflation data from Taiwan and the Philippines Tuesday. Taiwan also reports on trade.
West Texas Intermediate crude rose 0.5 percent to $52.78 a barrel after sliding the most since February on Monday. Brent oil closed at $56.54 a barrel in London, its first time below $60 since mid April.

As well as anxiety over Greece and China, the prospect of Iranian oil flooding an already well-supplied market unnerved crude traders last session. Iran, the fourth-largest member of the Organization of Petroleum Exporting Countries, has estimated it could double crude exports from about 1 million barrels a day within six months of sanctions being lifted.

“We’re getting our summer correction and I don’t know where it will stop,” Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, said by phone. “We could soon be looking at $50-a-barrel ceiling for WTI.”

The U.S. government reports on oil stockpiles Wednesday, with analysts projecting a 750,000-barrel drop for the week to July 3.

–With assistance from Jeremy Herron in New York and Ben Sharples in Melbourne.

To contact the reporter on this story: Emma O’Brien in Wellington at eobrien6@bloomberg.net To contact the editors responsible for this story: Emma O’Brien at eobrien6@bloomberg.net John McCluskey