Asian market preview 24/01/2008

The US markets were in one wild ride overnight with trading range of more than 600 points. The Dow lost more than 300 pts in the morning before rallying in the last minute and closed almost 300 pts higher. Gains were paced by financial companies which was seen to be outperformed after the Fed's rate cut. Speculation on lower borrowing costs will restore confidence in the financial system and also that the Fed will do more during their meeting next week made investors and bargain hunters come back into the equity markets. Dow ended higher by 298.98 pts or 2.5% to 12270.17, S&P500 gained 28.10 pts or 2.14% to 1338.60 while Nasdaq rose 24.14 pts or 1.05% to 2316.41.
Asian markets may open higher and may continue the rally from yesterday after the last minute comeback rally on Wall St overnight. Investors may be more confident after financial sectors rose in the US and they may start investing more in the Asian markets too. Crude oil price fell again overnight, recently priced at $87.80ish per barrel, gold at $890.50ish and JPY at 106.50ish after falling to as low as 105.10 last night. Nikkei futures closed at 13050 at CME, higher than yesterday's close of 12860 in Osaka and 12770 in Singapore.
The Kospi may open higher and may follow up on its rally from yesterday. Earnings from LG electronics may also boost the market as more confidence in investors are pouring in. Stocks related to Apple Inc may drop today after the share dropped more than $16 overnight. Kospi may open in the 213ish region and may rose to as high as 218ish depending on how confident are the investors in South Korea.
Hangseng may open higher again today following the 11% surge yesterday, making it the biggest gainer in the region. Financial sectors and exporters may get a boost today after more confidence are restored on Wall St. Hangseng may open in the 24700ish region and may even try the 25000 level today, but market volatility may be very high with the sharp rise and declines in recent days.