Asian market preview 01/04/2008

US markets ended the dismal Q1 2008 marginally higher overnight after a better-than-expected reading in the Chicago Purchasing Managers Index, which came in first before the ISM manufacturing index due out later on tonight. The index rose to 48.2 compared to the 44.5 a month earlier and the expected of 47.3 by economists. Trading volumes were light and market was not as enthusiastic with the data as it has been the most difficult quarter since Q3 2002 and investors' apetite for stocks has declined. The Dow ended up 46.49 pts or 0.38% to 12262.89, S&P500 rose 7.48 pts or 0.57% to 1322.70 while Nasdaq climbed 17.92 pts or 0.79% to 2279.10.

Asian markets may open higher today after the better-than-expected report from the US overnight. Investors may think that Asian markets will be able to weather the worsening economic outlook in the US. Crude oil and commodity prices fell overnight as Iraq resumed supply for oil and gold also declined almost $20. Crude oil was recently traded around $100ish per barrel, gold traded around $918ish and JPY traded around 99.80ish. Nikkei futures closed at 12730 in CME overnight and was opened at 12610 here today and recently at around 12720 after the Tankan survey came out earlier this morning.

The Kospi was opened around 217.65 and it rose higher just within 1 hour of trading and was recently around 220.50 after the positive business sentiment from the US and also driven by regional indices such as Nikkei. Kospi may be able to sustain its gain today and may even rise higher again later today.

Hangseng may open higher around 22800ish and it may go up beyond the 23000ish level again today should more investors are beginning to regain optimism in the new quarter this year. Regional indices may be one of the driving factor for Hangseng today and lower energy prices may also help the market. Positive news from the US is most likely be the main factor to consider for Hangseng.