Asian market preview 11/01/2008

US markets gained for 2nd day in a row in another volatile session after Bernanke signaled that the Fed are ready to make a move to prevent recession. Stocks also rose after investors speculated that Countrywide Financials will be bought by Bank of America. The gains were limited with declines in energy producers as oil dropped to below $94 during the day for the first time in more than 2 weeks with speculation that slower economic growth means less energy consumption. Dow rose 117.78 pts or 0.92%, S&P500 gained 11.20 pts or 0.8% while Nasdaq added 13.97 pts or 0.6%. Financial sectors climbed 2.3% after falling as much as 2% earlier.
Asian markets are set to rebound from yesterday's losses following US consecutive gains overnight. Speculation that the Fed will cut rates to ease recession concerns will be one of the main drivers today and I think that will boost financial sectors in Asia region too. Declines in oil prices may drag down energy shares across the region with Nymex crude oil traded at $94ish recently, gold at $893ish and JPY at 109.30ish. Nikkei futures settled at 14500 in CME up from a close of 14370 in Osaka and 14365 in Singapore yesterday.
The Kospi may get a rebound at the open after a surge in the US markets overnight. After plunging more than 1% yesterday, a technical rebound may happen and investors may put in their money in the stock market again with speculation that the Fed will cut rates further in January meeting. Exporters may get a boost with more confidence pouring in from the US. Gains may be limited by energy shares and volatility in the market may still be high today and my guess is that many day traders will be doing a hit n run until everything is calm. If the Kospi open around 233ish region, I think it's still a good chance to BUY for day trade. Kospi may move between: 230ish-237ish.
Hangseng may open higher today after US markets rose overnight, boosting exporter shares. Investors may come back to the market with speculation that the Fed will be cutting rates as early as January meeting. Oversold market may also spark a technical rebound and this may help Hangseng further. If Hangseng open around 27500, I think it may still be a good area to BUY for day trade. Hangseng may move between: 27200ish-27800ish. Volatility may still be high in the market today.