Asian market preview 28/01/2008

US markets ended the volatile week falling on Friday after investors took some of their recent winnings off the tables caused by so many uncertainties coming out of the market. The Dow ended Friday's session 171.44 pts lower or 1.38% to 12207.17, S&P500 lost 21.46 pts or 1.59% to 1330.61 and Nasdaq fell 34.72 pts or 1.47% to 2326.20. There'll be a lot of economic data coming out of the US and also decisions from the Fed and the US government to be made this week. December new home sales will be released on Monday, December durable goods order to be released on Tuesday, first estimate of US' GDP to be announced on Wednesday, December's personal spending to come out on Thursday and on Friday, US manufacturing and employment will tell investors how the economy fared in January. The Fed's rate decision will be announced on Wednesday after they finished the 2-day meeting. Above all these data and decisions, the big question still remains, how risky is the debt on banks' books right now following their bad bets on subprime mortgages?
Asian markets may start the week weaker today following the fall in Wall St on Friday. Investors may want to stay off the stock markets until there are some solid grounds to hold on to such as the Fed's rate decision and the economic data to come out of the US so that the investors can really measure is the US really going to experience recession and how bad is it going to be globally. Commodities markets also going to face some uncertainties following the stock markets; Crude oil recently traded at $90.70ish per barrel, gold at $913ish and JPY at 106.85ish. Nikkei futures settled at 13420 at CME, down from the close of 13690 here on Friday.
The Kospi may experience another volatile week and may start weaker today after Wall St fell on Friday caused by profit taking and uncertainties ahead of the important week in the US. Kospi may start around 211ish and may fall further if more investors want to stay off the stock markets before Wednesday.
Hangseng may open lower today, caused by profit taking on recent sharp gains at the end of last week and may stay week until at least Wednesday should investors want to stay off stock markets until some things are certain from the US. Hangseng may start the day below 25000 and may go even lower than 24500 today.