Asian market preview 28/02/2008

US markets ended the session mixed after comments from the Fed that they will still cut rates to support growth despite of increasing inflation boost markets. Weak economic data which showed that durable goods orders and new home sales fell to its lowest in almost 13 years made most stocks fell last night. Financial companies got a boost after the Fed's comments and also after Freddie Mac and Fannie Mae were allowed to buy more mortgages. Energy companies also declined after oil prices retreated overnight, but tech sector got a boost from Apple Inc. after they said that they will provide a software kit for its iPhone for people to modify its program. Stocks also fell after US$ fell to record low against euro of $1.51. Dow ended the session up by 9.36 pts or 0.07% to 12694.28, S&P500 fell 1.27 pts or 0.09% to 1380.02 while Nasdaq rose 8.79 pts or 0.37% to 2353.78.

Asian markets may open flat with a downside bias today following most stocks fell on the US last night led by pharmaceutical and energy companies. Volatilities may be high as tech and financial sector may provide some support for the markets today after their positive session in the US. Crude oil reached new intraday record of $102 before retreating towards the close. Oil was traded recently around $99.70ish, gold traded around $956.90ish and JPY rose against US$ to 106.40ish. Nikkei futures closed at 13920 in CME compared to the close of 13930 here yesterday.

Kospi may open lower today with profit taking maybe in session as investors may think that they are in recession now or are really close to recession. Volatilities in the market maybe high as Fed's comments that they will cut rates to save the slowing economy despite the rising inflation. Kospi may opened around 218ish and financial sectors maybe there to support the market again today.

Hangseng may open flat with really downside bias after a huge rally yesterday and nervous investors may want to cash in today in the time of uncertainties. Volatilities may be high in the market today as market mood is still positive but selling pressure maybe high too. Hangseng may open around 24300ish region and we will see where it will go from there.