Asian market preview 13/03/2008

US markets were closed lower overnight after a huge rally the day before. Investors were hesitant to pour more money into the market although they like what The Fed's plan to inject $200 billion into the system. Investors are still concerns that The Fed's plan may fail to help ease the declining credit market and won't be able to prevent recession quickly. Volatile energy prices also added to the anxiety; oil initially fell from its highs, only to go back up and set another record price and with very high crude prices, investors think that The Fed may have limited space to do something with the recession problems as inflation rises. The Dow fell by 46.57 pts or 0.38% to 12110.24, S&P500 fell 11.88 pts or 0.9% to 1308.77 while Nasdaq fell 11.89 pts or 0.53% to 2243.87.

Asian markets may open lower today after a huge gap formed yesterday's morning only to give up most gains by the end of the day. Profit taking may cause markets to edge lower and more worries about the condition of US economy may add to the decline. Crude oil set another intraday high of above $110 per barrel and was recently traded around $109.90ish per barrel. Gold was traded higher at $982ish, US$ go weaker against JPY and traded around 101.45ish. Nikkei futures closed at 12800 in CME compared to the close of 12910 here yesterday.

The Kospi may open lower today around 210ish today after a huge rally yesterday failed to hold towards the end of the session. The Kospi initially opened more than 2.5% higher only to give up most of its gains and closed at only 1% higher. Further profit taking may take place today in the market and investors may not want to bet more money into the market while waiting for more data coming out of the US.

Hangseng may open lower too today around 23150ish and may go to below 23000 again today if more investors decide to take profit. Higher crude oil may prove not quite healthy for the market as it means higher inflation for the Asian countries. Volatility in the market may be high again today and that may prove useful for us daytraders.