Asian market preview 15/11/2008

US markets rallied overnight after declining for the 3rd straight week on Friday, with solid preliminary results from IBM encouraging investors to go back into stock market. Technology stocks had the biggest advance so far this year, after IBM released preliminary earnings estimates which were 24% higher than previous year and also after Apple Inc. raised 2008 earnings per share to $5.04 from $4.84. Gold and oil companies also advanced helping the market to rebound from its worst start to a year. Dow rose 171.85 pts or 1.4% to 12778.15, the S&P500 added 15.23 pts or 1.1% to 1416.25 while Nasdaq gained 38.36 pts or 1.6% to 2478.3. A quite oversold markets also helped the rally today along with optimism that financial companies will inject more capital to deal with their huge writedowns caused by the credit market losses.
Asian markets may rebound after steep losses happened for past few trading session. Optimism that the earnings in the US may show that the companies are still going to report a 'not so bad' earnings may boost some confidence for investors here in Asia. Signs that the Fed will cut rate and they may even go further than aniticipated earlier also may boost stocks today in the region. Gold and oil companies may also contribute to the advance with gold rose to record and oil prices gained overnight after another bombing in Pakistan. Gold was at $903ish, crude oil traded at $94ish per barrel and JPY was around 108ish. Nikkei futures settled at 14245 in CME.
The Kospi may open higher today after another loss yesterday. Kospi was quite oversold and this may spark investors to get back into the stock markets and help a rebound course today. Exporters may advance today with optimism that the earnings from US will not be as bad as anticipated earlier and also with rate-cut optimism from the Fed. Kospi may open around 224-225ish and I think that it's still a good area to get a BUY considering how low the Kospi is right now. Kospi may move between: 221ish-228ish. However, gains maybe limited as investors are waiting for earnings report by Citi due out later tonight and see how bad the financial sectors are going to be.
Hangseng may get a rebound today and may open around 26700ish today. Hangseng was also quite oversold right now and this may help investors to get back and hunt for cheap stocks if they're optimist enough about the US earnings and more aggressive rate-cut from the Fed. Hangseng may move between: 26500ish-27300ish. However, gains maybe limited as investors are waiting for earnings report by Citi due out later tonight and see how bad the financial sectors are going to be.