Asian market preview 14/03/2008

US markets ended the session higher overnight after falling more than 2% earlier in the day. Markets fell initially at the open and fell further after $16.6 billion default at a Carlyle Group added turbulence in financial market. Weaker than expected retail sales data also added to concerns that The US is already in recession. Stocks began its rebound back up after an S&P report predicted an end to banks' subprime mortgage writedowns and after gold surged above $1000 an ounce, sparking a rally in mining shares. Oil companies also rose after oil set new record yet again. The Dow rose 35.50 pts or 0.29%, after falling more than to 220 pts, to close at 12145.74. S&P500 rose 6.71 pts or 0.51% to 1315.48 while Nasdaq rose 19.74 pts or 0.88% to 2263.61.

Asian markets may open higher today following the moderately higher close on Wall St. Markets may have slight rebound after steep losses yesterday and also after commodities prices rose higher again last night. Crude oil was recently traded around $110.70ish per barrel, gold traded around $995ish and US$ fell to its lowest against JPY in more than 12 years and was traded around 100.50ish. Nikkei futures for June delivery was closed at 12190 here yesterday.

The Kospi may open higher today following the higher close in Wall St after some optimism about subprime mortgage related problems are coming to an end. Kospi may have a rebound after sharp losses yesterday. Gains may be limited though as markets are still nervous as weaker retail sales data means that US is already in recession. Volatilities may be high in the market today.

Hangseng may open slightly higher after Wall St closed higher overnight over optimism regarding an end to subprime related writedowns. Hangseng may have a rebound from yesterday's sharp losses but gains may also be limited as an influenza outbreak may still cause problems for Hong Kong economy. Volatilities may be high in the market today and this is good for us daytraders.