Asian market preview 08/01/2008

The US markets ended the session mixed last night amid the growing speculation that the Fed will make another rate cut on the January 29-30 meeting after last week's disappointing reports on jobs and manufacturing pointed to a slowing economy during December. Fed chairman Ben Bernanke will deliver a speech on Thursday where investors will get some clues about the central bank's stance. Trading was shaky though with stocks swinging between gains and losses as investors are waiting for the start of earnings season. Investors will be watching the financial sectors closely which have been hit hard during the credit crisis. The Dow rose 27.31 pts or 0.21%, S&P500 rose 4.55 or 0.32% while Nasdaq fell 5.19 pts or 0.21%.
Asian markets may rebound from yesterday's heavy losses today. US mixed session may also helped a bit and the Fed's rate cut optimism may help investors betting some money into the stock market. Crude oil fell 3% or $2.82 overnight on concern that fuel consumption will decline along with the slowing economy. Gold recently traded at $857ish, JPY at 109ish and crude oil at $95ish. Nikkei futures settled at 14490 in CME, little change from the close of 14480 in Osaka and 14520 in Singapore yesterday.
The Kospi may open the session flat but I think a rebound from yesterday's losses is most likely to happen. Gains may be limited as the exporters may still be nervous on the situation of the US economy. Overall, technical rebound will lead the market today I think with local investors start to get back in the market if they want to start betting with the speculation that the Fed will be cutting rate during the next meeting. Kospi may move between: 230ish-235ish.
Hangseng may continue the rebound after a small rally late in yesterday's session. Exporters may still weigh the market down with concerns over the US economy's condition. Technical rebound is most likely to happen and if investors are optimist enough, there may be a rally happening today. Hangseng may move between: 27000ish-27700ish.