Asian market preview 04/03/2008

US markets ended flat overnight with more weak economic data in ISM manufacturing index and construction spending fell to its lowest since 1994. However, the data came in not as weak as expected and that caused the markets to rebound from its lowest. Markets moved in a very volatile manner with oil and metal prices soared to record highs, supporting the other declining sectors. There may be some optimism in the markets with the weak economic data was not as weak as expected; ISM manufacturing declined to 48.3 in February while construction spending fell 1.7% in January. The Dow ended flat, dropping 7.49 pts or 0.06% to 12258.90, S&P500 gained 0.71 pts or 0.05% to 1331.34 while Nasdaq, touching its lows in 15 months, declined 12.88 pts or 0.57% to 2258.60.

Asian markets may open flat but it may rise today after a huge selloff yesterday may prompt investors to hunt for bargain stocks. Oil rose to a record of $94ish while gold rose to as high as $992ish. Oil was recently traded around $92.40ish, gold traded around $98.40ish. JPY traded around 103.30ish and Nikkei futures closed at 13100 in CME compared to the close of 12930 here yesterday.

Kospi may open flat with an upside bias today with a little bit optimism came back into the markets in the US overnight. Investors may see an opportunity to go into stocks and make quick profits today after a huge selloff in the global markets yesterday. Oil and commodities related companies maybe called into action supporting weak financial sectors.

Hangseng may open higher today after US markets finished with more advances than decliners. It may follow other markets with oil and commodities sectors leading the advance today. However, Warren Buffet's comments last night; noting that realistically the US is already in a recession may cause the markets to be volatile today and that may prove useful for us daytraders.