Asian market preview 16/01/2008

US markets resumed its January tumble last night after Citigroup announce a Q4 net loss of $9.83 billion compard to a $5.1 billion profit a year earlier. It also cut 41% dividend, 4200 jobs and writing off $18 billion for mortgage defaults. This was the worst loss in Citigroup's more than 200 years history. Stocks also declined after retail sales fell 0.4% in December, making it the worst year since 2002. Dow fell 277.04 or 2.17% to 12501.11, S&P500 declined 35.30 pts or 2.49% to 1380.95 while Nasdaq tumbled 60.71 pts or 2.45% to 2417.59. Apple shares also fell after new products failed to impress customers and Intel shares also plunged 13% after hours with Intel released a lower-than-expected forecast.
Asian markets are set to open lower again today following the US markets' rout overnight. Crude oil and gold prices also settled lower last night. Crude oil was recently traded at $91ish, gold at $894ish and JPY traded at 106.80ish. Nikkei futures closed at 13730 in CME, almost 300 pts lower than the close here yesterday. Nikkei may be hit hard with JPY strengthened against USD to 106ish which cut the value of overseas export. Asian markets may have to rely on each countries' earnings report to get a ground for their markets after the almost certain recession condition in the US.
The Kospi may open lower again today falling to its lowest since the August rout last year. It may open around 219-220ish and I don't recommend anything at this stage, seeing how uncertain the market is going to be. South Korean market may have to wait for its own earnings report for investors to see how their economy is performing with the ever mounting fear of recession from the US. Exporters may be hit hard again today with the huge fall from the US. Kospi may move between: 215ish-223ish today. We may expect another high volatility session in Kospi today.
Hangseng may open lower again today after the US plunge in the worst start to the year. It may open around 25300-25400ish and I don't recommend anything at the open. Volatility is expected to be high again and I think opportunities are going to be there for day traders. Hangseng may also fall to below 25000 if more bad earnings come out from Hongkong. Hangseng may move between: 24900ish-25700ish.