Asian market preview 21/02/2008

US markets reversed earlier losses to end the session higher overnight. Higher inflation rate was recorded last night and that spurred concern that the Fed may take inflation into consideration before cutting rates further. However, the Fed's comments saying that they are less concerned with inflation and stated that lower rates are necessary for some time, helped the markets to do a late rally as higher inflation was perhaps expected given the latest readings on consumer prices and the rise in oil. HP led the rally in tech stocks and financial sector also had a nice run up following the Fed's comments. Dow finished the session higher by 90.04 pts or 0.73% to 12427.26, S&P500 rose 11.25 pts or 0.83% to 1360.03 and Nasdaq rose 20.90 pts or 0.91% to 2327.10.

Asian markets may open higher today following US' markets rally overnight. The rally in oil prices may help oil related companies to rise again today, while tech and banking sectors may also have a nice start to the day. However, the projected of a slower growth by the Fed and higher inflation is expected this year may weigh on the market later on in the session yet again. Crude oil was recently traded at $100.70ish per barrel, gold was at $943.80ish and JPY at 108ish. Nikkei futures settled at 13520 in CME, higher than the close of 13355 here yesterday.

Kospi may start the day higher around 217ish after the Fed's reaction of not extremely concern over the slightly higher inflation in the US overnight. Energy and mining related companies may lead the rally today with tech and banking sectors helping to support the market. However, inflation worries may remain to weigh in the market and slower economic growth may put some concern into investors' minds. Volatilites may still be high with investors may still in the mood for daytrading.

Hangseng may open higher around 23900ish and may go over 24000 level again over the optimism that the Fed may still be cutting rate further to prevent recession from happening. However, higher inflation caused by higher energy and commodity prices may prevent the market to make a huge rally today. Volatilities in the market may still be high and this will greatly help us daytraders.