Asian market preview 05/12/2007

The Dow closed down again overnight, losing 65 pts or 0.5% to 13248.73. This is mainly caused by concerns on subprime credit crunch which will reduce profits for 4 biggest securities firm said JPMorgan. Lower oil prices also dimmed the earnings outlook for energy companies such as Exxon mobil and Chevron. Oil dropped to $88ish per barrel after OPEC said that they would discuss production increase in tomorrow's meeting. Gold prices rise to above $800 again and the Yen traded at 109ish per US$. The chances for the Fed to lower interest rate by another half percent increased last night as traders bet the Fed will do something to avoid recession in the US.
Asian markets might fall following the concerns and uncertainties in the US following the predicted writedowns for securities firms such as Goldman Sachs and Morgan Stanley. Nikkei futures closed at 15415 at CME, lower than the close in Osaka at 15465.
Consolidation may take place for Kospi too after it reversed the down trend yesterday to close higher. With the US as its major export destination, traders in South Korea are probably going to sit out on the sidelines waiting for the uncertainties of these credit turmoils. Profit taking may also push the Kospi index lower, but watch out if traders are going to bet on the Fed to lower interest rate by half percentage point. If the Kospi open near yesterday's closing price or still in the high 243ish, I think it's safe to SELL early in the morning and get a fairly quick profit of at least 100 pts. If not, just wait it out for 1hr and see the market's direction. My price target range today is: 239ish-246ish if traders are betting on interest rate cut by the Fed.
HangSeng might also fell today after rising to above 29000 yesterday. US economic concern might cause the traders in Hong Kong to sell and enjoy some quick profit in this time of uncertainties. Energy companies may also fall after crude oil touched 6 weeks low. Rebound may happened if the market fell to low and if traders are going to bet on interest rate cut The Fed are going to make. My price target range today is: 28600ish-29200ish.