Asian market preview 26/02/2008

US markets rallied last night following the confirmation of AAA ratings for Ambac and MBIA. This provided relief for investors as they feared that a downgrade of the insurers' credit ratings would lead to billions of dollars in writedowns of securities held by already troubled banks and investment firms. There has been speculation that Ambac may find sufficient capital early this week to hold onto its "AAA" rating it needs to remain in the municipal bond business. Dow rallied 189.20 pts or 1.53% to 12570.22, S&P500 rose 18.69 pts or 1.38% to 1371.80 while Nasdaq added 24.13 pts or 1.05% to 2327.48. Markets also rallied after existing home sales fell less than expected and after oil hovered near $100 per barrel again which boost shares for Exxon Mobil and Chevron. Citigroup, however fell overnight after speculation that more writedowns caused by subprime mortgages may cause Citi to post a loss of $1.6 billion for 1st quarter.

Asian markets may open higher for 2nd day in a row today following the optimism that sparked a rally in the US overnight. When there's good rumors, investors would quickly jump in now and try to get some profit in this troubled times. Financial sectors may lead the way again today after being hammered badly in recent times. Oil companies may also push the Asian markets higher. Crude oil was recently traded around $99.20ish, gold was traded around $938ish and JPY traded around 108ish. Nikkei futures was closed at 14010 in CME, higher than the close of 13850 here yesterday.

Kospi may start the day higher around 219.50ish and may try the 220 level today. Investors' optimism may help market and a boost in financial sector may lead the way. Export sector may also get a boost today and optimism in investors' minds are what matter now to push the Kospi higher.

Hangseng may open higher today around 23600ish. A rebound may happen today after Hangseng fell for the past 2 sessions following China weakness. If the investors are optimist enough, Hangseng may try the 24000 level today after getting a boost from financial sectors, export and oil companies.