Asian market preview 29/02/2008

US markets fell for the 1st time this week last night after higher unemployment claims and the prospect of more bank failures made investors think that recession is actually inevitable. Fed chairman mentioned that while large banks likely to recover from credit crisis, other banks are at risk of failing. Unemployment claims rose last week by 19000 to 373000, the highest level since January. In earnings front, companies also reported weaker earnings for Nextel and Dell. Dow fell 112.10 pts or 0.88% to 12582.18, S&P500 declined 12.34 pts or 0.89% to 1367.68 while Nasdaq fell 22.21 pts or 0.94% to 2331.57.

Asian markets may open lower today following the nervousness shown within the investors in the US overnight as stock markets tumbled for the 1st time this week. Being a Friday, profit taking may also be in session today with markets rose for the past few days. Commodities shares may rose with crude oil and gold rose to record overnight. Oil was recently traded around $102.60ish per barrel, gold traded at $968ish while JPY gained to highest against US$ at 105.30ish. Nikkei futures closed at 13675 at CME, lower than the close of 13840 here yesterday.

Kospi may start lower today around 217ish following the tumbled in US markets. With South Korean exports may report a cool down and inflation rising, market may fall further and also paced by profit taking today, market may be having a wild rollercoaster ride with commodities shares may support the tumble in the market.

Hangseng may start the day lower around 24200ish and may even fall further to below 24000 should the investors are worried that recession in the US maybe inevitable. Exporters and financials may lead the fall today but energy related shares and mining shares may rise to support the market today. Profit taking may also be in session today after market rose for the past week. Volatilities maybe high again today and this may prove useful to us daytraders.