Asian market preview 11/03/2008

US markets extended drop overnight to close at its lowest levels since 2006, led by the plunge in financial shares, on speculation that earnings estimates will prove to be too high as economy slows and credit losses spread. Better than expected report from the US commerce department that said US wholesale inventories rose 0.8% in January and sales at US wholesalers rose 2.7% were shrugged off by investors as oil rose to another record highs and also after Bear Stearns Cos. tumbled on concern the brokerage was facing financial difficulties. The next market moving data is going to be on Thursday on retail sales and Friday on consumer prices. The Dow fell 153.54 pts or 1.29% to 11740.15, S&P500 fell 20 pts or 1.55% to 1273.37 while Nasdaq fell 43.15 or 1.95% to 2169.34.

Asian markets may open lower yet again today following more worries about the US recession coming out of the world's biggest economy. Inflation worries as commodities prices surges everyday may also have an impact around Asian markets. Crude oil reached as high as $108.17 and was recently traded at 107.90ish per barrel, gold traded lower around $971.60ish and JPY traded stronger VS US$ at 101.70ish. Nikkei futures was closed at 12440 in CME compared to 12620 here yesterday.

The Kospi may start the day lower yet again to around 204ish. Should investors think that the conditions are going to worsen, Kospi may even fall to below 200 for first time this year. Some investors may expect a rebound after Kospi losing quite a lot of points since Friday and this may cause high volatilities in the market.

Hangseng may open lower today after the market rallied last minute yesterday to around 22500ish. Analysts have declared that the US is clearly in recession now and concerns that it will spread worldwide may caused investors to flee to safe haven. In long term, Asian markets such as China and India may support the region and this will help Hangseng market too. Volatilities in the market may still be high today and this will be good for us daytraders.