Asian Market Preview 17/03/2008

US markets tumbled on Friday after Bear Stearns revealed that it needed rescuing. The Fed and JPMorgan Chase & Co. offered Bear Stearns relief to boost up its liquidity from a sudden crunch that has made investors nervous that the credit problems are far from over in the financial sector. The markets have risen mildly earlier after report from Labor department showed the Consumer Price Index remained flat for February which means inflation have not risen up too much. However, markets turned south after news from Bear Stearns came out. The Dow lost 194.65 pts or 1.60% to 11951.09, S&P500 fell 27.34 pts or 2.08% to 1288.14 while Nasdaq fell 51.12 pts or 2.26% to 2212.49.

Asian markets may open lower again today following fears about an ongoing credit crisis in the US, oil traded near all time high and after gold touched an all time high price at $1009ish. The weakness in US$ may also means that Asian markets may fall further. Crude oil recently traded around $109.95ish, gold traded around $1006ish while JPY traded around 98.80ish. Nikkei futures closed at 12140 in CME lower than the close of 12330 here on Friday.

THe Kospi may open lower today around 203ish and may fall further on concerns that inflation may pick up after oil traded at near all time high prices and after Korean Won gained strength against US$. US credit market concerns may also fuel more sell-off in the market however, a dim hope may be there as analysts believe that the US is close to a bottom and after Henry Paulson said that they are going to do whatever it takes to help rescue the market.

Hangseng may open lower and below 22000 mark around 21800ish today. It may fell further on investors' concerns regarding the health of the US economy and the ongoing credit crisis. High commodity prices do not offer help to the market as it signaled a higher inflation rate around the region especially after US$ grow weaker each day against most currencies. However, long term investors may start buying into the market and start collecting cheap stocks and this may cause volatility to be high in the market and may offer good advantage for us daytraders.