Asian market preview 27/02/2008

US markets extended rally last night after IBM approved a $15 billion stock buyback which suggests that there are still companies with financial muscle. This stock buyback, higher retail earnings and higher commodity prices bolstered profits will hold up even as economy slows. The buyback news came after two dismal economic reports showing core producer price index shot up twice than expected and that consumer confidence dropped to lowest in 5 years. The data reinforced worries that US is suffering from stagflation, a state when economy weakens amid rising costs. The Dow rose 114.70 or 0.91% to 12684.92, S&P500 rose 9.49 pts or 0.69% to 1381.29 while Nasdaq rose 17.51 pts or 0.75% to 2344.99.

Asian markets may open higher again today and may continue from yesterday's rally after US' investors showed more confidence with the markets rising 2 days in a row and after optimism that the Fed will still cut rate though the inflation is rising. Oil price rose to new record highs after the US$ fell to record low overnight. Crude oil was recently traded around $101.20ish, gold traded around $948.20ish and JPY traded around 107.20ish. Nikkei futures was settled at 14040 in CME, higher than the close of 13970 here yesterday.

Kospi may open higher today at around 219ish and may test the 220 level today with the slight confidence shown in Wall St and after commodity prices jumped overnight. However, nervousness among investors may still exists and market may swing up and down in daytrade, providing us with more volatilities.

Hangseng may open higher again today around 23900ish and may test the 24000ish level today with strong close in Wall St for the past 2 days and further rebound up from the drop in Hangseng following China's inflation worries. Economy uncertainties may still linger among investors and this may cause high volatilities which can provide us with good daytrading patterns.