Asian market review 05/02/2008

Asian markets fell today, halting a 4-day rally after lower profit forecasts by some companies and also a downgrade for POSCO by Merril Lynch. Investors have become cautious that the slowing global economy might hurt earnings for companies. Investors in some Asian countries also did a profit taking action following the upcoming Lunar New Year holidays. Japan's Nikkei fell 114.20 pts or 0.82% to 13745.50 and its futures was closed at 13750.
Kospi opened the day at 216.95 and it fell further to 216.05 before rebounding back up. Today's trading was between small margin compared to the hectic month in January. Kospi moved between 216.05-218.35. Kospi losses were paced by POSCO after the share was downgraded by Merril Lynch saying that profit outlook may fall this year with slow economic growth globally. Profit taking also took place for Kospi ahead of Lunar New Year holiday.
Hangseng opened lower at 24802 and it fell as low as 24506 before rebounding up. It played around 24600-24700ish for most of the day and closed the 1st session at 24684. 2nd session we saw Hangseng opened higher at 24699 and it went further up breaking the 25000 mark before going back down and was closed at 24712. Profit taking dominated the market ahead of the Lunar New Year holiday but market remains strong as investors thought that the share prices have bottomed out. Hangseng moved between 24506-25003.