Asian market preview 07/01/2008

The US markets tumbled again on Friday, completing the worst start of the year since 2000. The Dow tumbled 256.54 pts or 1.96%, Nasdaq fell 98.03 pts or 3.77% and S&P500 lost 35.53 pts or 2.46%. The bad economic data that came out this week helped contribute the the fall in the markets. ISM manufacturing index which fell to 47.7 in December, the job data with higher unemployment rate and the lower than expected non-farm payrolls of 18,000 all have indicated that the US economy will sink into recession. The Dow have decreased 3.5% last week, Nasdaq lost 5.6% so far this year and S&P500 lost 3.9% in the first 3 days of trading.
Asian markets may open lower today after the plunge in Wall St on Friday. Renewed concerns on US recession may pace the fall in Asian markets with exporters the main sector to be hit. Crude Oil traded at $97ish per barrel, gold at $860ish and JPY at 108.50ish. Nikkei futures settled at 14480 in CME, compared to the close of 14670 here on Friday.
Kospi may open lower again today after disappointing jobs data came out of the US on Friday. Kospi may open around 234ish and if it opened around there or higher, I still think it's quite safe to SELL and get a quick profit. Kospi may touch the 230 mark again today should the investors decide to flee from investing in higher risk assets due to the mounting recession problems from the US. However, the strength in Asian markets itself may be a point to consider and Kospi may not fall as bad as I anticipated in the end of the trading session. Volatility is the key for day traders here. Kopsi may move between: 229ish-235ish.
Hangseng may open lower again after gaining some grounds on Friday. I think the effect from Wall St may hit Hong Kong's exporters and this may be costly considering how volatile the Hangseng market is. Should Hangseng opened higher than 27300ish mark, I think it's quite safe to get a SELL and get quick profit today. Hangseng may fall to below 27000 mark again today in a volatile session between investors fleeing and those seeking cheap stocks. The strength in Hangseng market, which is closely related to China, may not be affected as bad by the bad US data in the end of the trading session. Volatility is the main key for us, day traders here. Hangseng may move between: 26700ish-27500ish.