Asian market preview 12/03/2008

US markets posted the bigget gain in 5 years overnight after The Fed said it will pump $200 billion into the financial system to ease the strain from the credit crisis. The program is part of a worldwide effort to help struggling banks and mortgage providers. Investors and analysts belive that this plan is a more creative way to help the economy and markets other than the not-so-effective rate cuts. The Dow flew 416.66 pts or 3.55% to 12156.81, S&P500 jumped 47.28 pts or 3.71% to 1320.65 while Nasdaq surged 86.42 pts or 3.98% to 2255.76. With these jumps, markets have come out of their worst levels of the year. However, many analysts believe that this rally might be short-lived as recession concerns still looms above investors' head.

Asian markets may open higher today following the huge rally on Wall St overnight over The Fed's plan to boost up liquidity in the market. Oil prices also rose overnight to new highs and was recently traded around $108.40ish per barrel, gold traded at $973ish and JPY traded at 103.41. Nikkei futures closed at 12980 in CME compared to the close of 12650 here yesterday.

The Kospi may open higher at around 214ish today after The Fed's plan to help banks put some confidence back into the market. Kospi may extend yesterday's rally and investors may come back into the market after series of bad data from the US in the past few sessions. There may be a lot of short-term traders and that may cause volatilities for the market.

The Hangseng may open higher at around 23400ish and may even go beyond 23500ish caused by new found optimism for the market as The Fed plans to boost liquidity. Short term investors may come back into the market and try to get quick profits today and that may cause volatilities to be high for the market today and may be to our advantage as daytraders.