Asian market preview 21/01/2008

The US markets slid again on Friday after government plan of $150 billion stimulus package to revive the economy is seen to be not quite enough to help the US came out of recession by investors. Markets did have a nice rally early in the morning, rose as much as 300 pts for the Dow after earnings from IBM and AMD put some confidence back into the market. The Dow fell 59.91 pts or 0.41% making a weekly drop of 4.02% to 12099.30, S&P500 dropped 8.06 pts or 0.6% making a weekly drop of 5.41% to 1325.19 while Nasdaq declined 6.88 pts or 0.29% making a weekly drop of 4.10% to 2340.02. Volatility are expected to still be high in the coming week or so, with stocks dropping with bad financials report and bargain hunters kicking in with big companies' good earnings such as Microsoft, Pfizer, AT&T, Caterpillar, Honeywell and Johnson & Johnson. More banks to report their earnings this week such as Bank of America and Wachovia Corp. may cause more turmoil in the market.
Asian markets may open lower again today after another drop in the US markets on Friday. With the US heading for recession, global markets are feeling very nervous and it's hard for investors to stay long for stocks right now. Good earnings report in some Asian countries may help to boost markets, but these reports are not enough to keep the gains as more bad news keep coming out of the US. Commodities prices is going steady but are still on the high, crude oil priced recently at $90.50ish per barrel, gold at $884.20 and JPY at 106.70ish. Nikkei futures closed at 13575 in CME, down from the close of 13690 here in Osaka and 13670 in Singapore.
The Kospi may open lower again today after another loss in the US. Kospi may have yet to give up their gains again but this time, I don't think it will fall too far. Kospi completed a nice reversal rally on Friday but nervous investors may have to go out of the game as they fear for more bad news coming out of the US. Some note to be taken notice is that the US markets will be closed tonight for holiday. Market volatility may still be high and this is still good news for day traders.
Hangseng may open lower again today after a mild drop on Wall St on Friday. Gains for Hangseng on Friday may be reduced today and this may cause more volatility in the market. With public holiday in the US later tonight, investors may take some action for quick profits today and tomorrow, while waiting and preparing for more bad news to come out of the US.

For today's price predictions, do not hesitate to contact me as I'm not allowed to post price predictions on this blog.