Asian market preview 06/03/2008

US markets closed slightly higher overnight after a better than expected reading on the service sector and figures on worker productivity calmed fears about the economy. The Dow were up as much as 120 points but it gave up most of its gains after the Fed released its beige book where it showed a weak economic data and also after the plan to bail out Ambac fail to amuse investors. Dow gained 41.19 pts or 0.34% to 12254.99, S&P500 rose 6.95 pts or 0.52% while Nasdaq rose 12.53 pts or 0.55% to 2272.81. The Fed's beige book saw eight of the dozen Fed district softening or weaking growth in business activity while others showed slow or modest growth. This data left more concerns and worries regarding the economy health for investors.

Asian markets may open higher today following the slightly stronger close for the US markets and also after oil and commodity prices rose to record highs. Oil rose after the US showed an unexpected decline in the inventory and also after OPEC said that it will leave its output unchanged. Oil surged more than 5% and was recently traded around $104.60ish per barrel, gold rose and was recently traded around $988.50ish while USD got weaker against JPY and was traded around 103.95ish. Nikkei futures was closed at 13010 in CME compared to the close of 13035 here yesterday.

Kospi may opened higher yet again today around 213ish and may rose further if investors would like to see this as a buying opportunity and also energy and commodity companies may be able to give some support to the rally. Volatility may be high as investors would try to get some hit and run profit in these uncertain times.

Hangseng may open higher at 23300 and may get a nice rebound today after losing grounds in the past 3 days. Energy and commodity sector may boost the stocks today and exporter may get better today. Investors may go back into stock markets and get a chance to buy while market is still not as strong. Volatility may be high with investors trying to get quick profits today.