Asian market preview 22/02/2008

US markets posted its 2nd loss this week and finished with a sharp loss overnight after regional manufacturing fell more than expected. Conference Board's January index of leading economic indicators, also posted its 4th straight drop. These 2 pieces of information spurred concern that the economy has already fallen into recession. Energy companies led the drop after oil fell more than 1.5% with concerns that recession means less demands and also the US' oil inventories were more than expected. Dow fell 142.96 pts or 1.15% to 12284.30, S&P500 lost 17.50 pts or 1.29% to 1342.53 and Nasdaq fell 27.32 pts or 1.17% to 2299.78. Investors have already priced in the Fed's next interest rate cut.

Asian markets may open lower today following the fall in the US' markets overnight and may fall further if investors would take their recent winnings off the table following a rebound yesterday. Crude oil fell overnight and was recently traded around $97.30ish per barrel, gold was traded around $945ish after touching an all-time high of $958ish and JPY traded around 107.30ish. Nikkei futures was closed at 13545 in CME, lower than the close of 13675 here yesterday.

Kospi may open lower today around 214ish and may even fall further with recession fears on investors' minds and also profit taking to dominate the market today. There are no indications that the market would move up today but volatilities may still be high today.

Hangseng may start the day lower today around 23200ish following the sharp losses on Wall St overnight and market may even fall to below the 23000 mark if investors' fears on US recession and that it will spread to Asia. Oil related companies may fall today as oil prices tumbled overnight. Market volatility may still be high and that's a good thing for us daytraders.