Asian market Preview 10/01/2008

Stocks in the US rebounded late in the session to finish the day higher after another volatile session overnight. Bargain hunters helped the market while also waiting for the earnings season to kick off with Alcoa due to report its 4th Quarter earnings after hours. Financials stocks rebounded from 4 year low after Warren Buffet's Berkshire Hathaway Inc. said that it may invest in municipal bond insurers. Meanwhile, technology sector gained for first time in seven days after Hewlett-Packard raised its profit forecast for 2008. Dow gained 146.24 pts or 1.2%, S&P500 added 18.94 pts or 1.4% while Nasdaq rose 34.04 pts or 1.4%. Alcoa reported after hours that 4th quarter profit jumped 76%, beating Wall St's estimates. Investors are waiting now for Bernanke's statement due to speak on Thursday.
Asian stocks may follow up the rebound from yesterday's session after the strong close in the US markets. Crude oil have declined from its highs after recession concern left concerns that consumer may spend lower on oil. It is traded around $95.80ish per barrel recently. Gold pulled back after it touched $900 mark last night to around $878ish recently. USD gained some grounds on JPY and it's now around 110 per USD. Nikkei futures settled at 14605, rose from the close of 14530 here after late rally yesterday.
The Kospi may open higher today following strong US close overnight. Trading session may still be volatile though should the foreigners keep becoming net sellers in the Korean market. However, some positive sentiment may return to the market and the market may continue from yesterday's late rally. Mining stocks and pharmaceuticals may gain more and exporters may rebound today. If Kospi opened around 235ish, I think it's still a good BUY area to get quite a nice profit today, but watch out for volatility. However, since Kospi have made quite a nice run yesterday, some profit taking may be happening for day traders who doesn't want to hold longer. Investors are also waiting for rate decision from Bank of Korea where it is expected to hold rates at 5%. Kospi may move between: 232ish-239ish.
Hangseng may open higher continuing yesterday's rally after US late rally last night. Volatility in the market may also still be high as investors may still be worried about US' recession. However, positive sentiment may help investors to bet more money in the market and makes Hangseng go higher again today. If Hangseng open around 27700ish region, it may still be a good area to get a BUY and get a profit today. Hangseng may breach the 28000 mark again but we'll see about that. Day traders may have profit taking session if they don't want to hold stocks in these uncertain times. Hangseng may move between: 27300ish-28100ish.