Asian market preview 16/04/2008

US markets ended the trading session mildly higher overnight after a better-than-expected earnings from some smaller financial companies and healthcare company Johnson & Johnson. Investors were given a lot of data to digest and some postive signs came out of it. PPI data rose 1.1%, higher than expected but it's still in the comfort inflationary zone which indicates that The Fed still has room to cut more rates if the economy weakens further. Oil producers such as Exxon Mobil and Chevron rose after oil hit record highs overnight. Financials led the gains overall with banks stocks are considered to be quite cheap right now and analysts said that it's a good time for investors to go back into financials. Trading volumes were quite thin though as many investors are still waiting for the whole financials' earnings data to come out later on this week. JPMorgan will be announcing on Wednesday, Citigroup to report on Friday while Bank of America next week. Some investors are also nervous to see that food and other commodity prices keep soaring up and if it stays this way, it could be a problem. The Dow rose 60.41 pts or 0.49% to 12362.47, S&P500 rose 6.11 or 0.46% to 1334.43 while Nasdaq rose 10.22 pts or 0.45% to 2286.04.

Asian markets may open higher and may extend their rebound from yesterday following a more positive signs to come out of the US regarding earnings and inflation data. Many analysts believe that the 'worst' for credit crisis is behind us now and that this is a very good time for investors to go right back into the market. Crude oil and commodity prices will be eyed by investors. Oil producers may support the rally today after oil rose to record highs last night. Crude oil was recently traded around $113.70ish per barrel, gold traded around $927ish and JPY traded around 101.80ish. Nikkei futures closed at 13040 at CME overnight compared to the close of 12880 here yesterday.

The Kospi may open higher today at around 226ish after dropping for 2 days in a row yesterday. Kospi may rebounded today following the positive signs from the US and regional markets but investors may have to judge the market locally too. Volatility may still be high like yesterday as investors do not want to put high bets onto the market. Chipmakers may drive the market after Intel reported in line earnings report after hours in the US.

Hangseng may open higher at around 24000 and extend its rebound from yesterday following the better-than-expected reports and data out of the US. If Hangseng can breach 24000, it will find its resistance around 24300 and if it decided to go back down, it will find its support at 24600. Hangseng market may also look at China mainland market for direction and support its rally today. Volatility may be high in the market as there are more data to come out of the US tonight such as the CPI data and financials earnings report.