US markets tumbled on Friday fueled by US jobs data after government surprised investors with a report that employers eliminated 63,000 jobs last month when investors expected a 25,000 gains in jobs. The news added to the fears that the US economy is succumbing to recession. The markets were closed off its lowest levels after The Fed said that they will add as much as $200 billion to the banking system over the next month to offset the credit crisis. Analysts said that it will take time for economy to recover, although The Fed said that they will keep lowering rate and it will be some time before they start to reverse the cuts. Dow fell 146.70 pts or 1.22% to 11893.69 making it the lowest close since October 2006, S&P500 fell 10.97 pts or 0.84% to 1293.37 making it the lowest close since August 2006 while Nasdaq fell 8.01 pts or 0.36% to 2212.49 making it the lowest close since September 2006.
Asian markets may open lower today following the US jobs report and also the ever increasing fears of US recession. Crude oil fell slightly and was recently traded around $105.35ish per barrel, gold fell and was recently traded around $973.70ish and JPY rose against US$ to trade around 102.20ish. Nikkei futures closed at 12630 in CME compared to the close of 12675 here on Friday.
Kospi may open lower today and exporters may be hit bad as the main export destination for South Korea are feared to be in a recession. The Kospi may fell to below 205ish today should the nervous investors and foreigners decide to take away their capital in these dark times and wait for better times to reenter.
Hangseng may open lower today and may fall to below 22000 today as the fears of US recession is mounting by the day and investors feared that the effect will spread and affect Hongkong a lot. Volatility in the market may be high as there may be some bargain hunters who would take the advantage to collect stocks with cheap prices.
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