Asian market preview 18/04/2008

US markets ended the session flat overnight a day after surging more than 2%. Stocks were mixed after earnings results came out mixed too. IBM posted a better-than-forecast earnings while Pfizer and motorola trailed analysts' estimates. Merril Lynch also reported a Q1 loss of $2.14 billion and plans to cut 3000 more jobs. However, Merril's CEO believe that business conditions in April appear to be better than Q1 and its stock finished higher. Reports from the manufacturing sector showed that activity fell to -24.9 from -17.4 in March but the survey found most manufacturing executives "cautiously optimistic" about future activity. Unemployment claims were higher and that reinforced recession concerns. Unemployment claims rose by 17000 to 372000 last week. Analysts believe though that after a huge rally the day before and markets managed to hold most of the gains despite weak data, it showed positive signs for the market. The Dow edged up 1.22 pts or 0.01% to 12620.49, S&P500 rose 0.85 pts or 0.06% to 1365.56 while Nasdaq fell 8.28 pts or 0.35% to 2341.83.

Asian markets may start the day flat today and may have a slight downward bias as there are some weak economic data from the US and investors may lock in profits after 2 days of nice gains. Tech sector may drive the market again today following the better than expected google's earnings after hours in the US. Crude oil price stayed above $114 and was recently traded around $115ish per barrel, gold traded around $941.40ish and JPY weakened against the US to 102.40ish. Nikkei futures closed at 13480 in CME overnight compared to the close of 13420 here yesterday. Markets' volatility may be high today.

Kospi may start the day flat today following the uncertainties in the US with some upward bias in the open. WIth the Wall St managing to hold most of their gains from the previous sessions, Kospi may have some upward sentiment but investors may start to lock in profit after 2 days of nice gains. Market volatility maybe high as there are also some weak economic data out of the US. Financials sector was not as good as first anticipated as Merril posted bigger-than-expected loss. Chipmaker and tech sector may drive the market again today after IBM gave out good results.

Hangseng may start the day flat with upward bias today around 24300ish. With US ended its session flat, Hangseng may follow China markets for direction and today Hangseng may have some profit taking today also ahead of the weekend and if China investors are nervous regarding the rate decision, Hangseng may lose quite a lot. Markets volatility is expected to be high with 24000 as its support and 24500 as its resistance today.