Asian market preview 15/04/2008

US markets end the session modestly lower last night where investors decided to take a little break after the selloff on Friday following the disappointing GE results. Last night, another surprise came from Wachovia Inc., which posted an unexpected loss of $393 million and cutting its quarterly dividend 41%. Wachovia also said that they are planning to raise $7 billion to replenish their capital, lost from credit problems. The overall markets decline was limited though by a better-than-expected report on retail sales. March's retail sales showed a 0.2% rise following February's 0.6% decline and was better than the expected flat reading. Trading was slow overnight and investors are still waiting for more bad news to come. Citigroup also declined after analysts cut its 2008 and 2009 earnings estimates. The Dow fell 23.36 pts or 0.19% to 12302.06, S&P500 fell 4.51 pts or 0.34% to 1328.32 while Nasdaq fell 14.42 pts or 0.63% to 2275.82.

Asian markets may open quite flat today following the huge selloff yesterday. Markets may edge lower on more uncertainties from the US, but it may be limited and markets may even rebound from yesterday's big losses. An increase in retail sales over in the US may be used as a reason for investors to start some bargain hunting to get quick profit in these uncertain times. Oil price rose overnight and was closed at a record closing price. Recently, oil was traded around $111.88ish per barrel, gold was traded around $923.30ish and JPY traded around 101.12. Nikkei futures closed at 12985 at CME overnight compared to the close of 12905 here yesterday.

Kospi may start the session rather flat with a modest loss posted by the US markets after Wachovia Inc.'s disappointing results. The South Korean market may have a rebound too if earnings from its own country is not as disappointing as predicted. However, higher oil prices may put some pressure too in the market. Volatility may be high in the market as investors are still waiting for more bad news to come.

Hangseng may start the day quite flat around the 23800ish level and it may even rise quite a bit after a huge more than 3% drop yesterday. Today may be a day for quick hit and runs for daytraders as volatility maybe high. Mainland China market may still have some impact on the Hangseng market and may drive the market lower further if China markets are still nervous about the rate decisions.