Asian market preview 21/04/2008

US markets rallied on Friday after results from big companies such as Google Inc., Caterpillar and Citigroup beating analysts' estimates and they raised earnings forecast and company performance for Q2. Google rallied $89.87 or 20% in one day, the most since its IPO in August 2004 after saying that sales rose 46% from text advertisements and overseas sales rose 55%. Caterpillar also rose the most in 7 years after earnings rose 13% from sales to China and India. Citigroup meanwhile, cut 9000 more jobs and reported $5.1 billion loss in Q1 but beating analysts' estimates. Investors started to realize now that in the first week of earnings, more than 50% companies that have already reported, came up with better earnings than estimates. It showed that companies outside financials are still doing good and outlook for second half of the year is looking good as some analysts forecasted. Oil rose to as high as $117 per barrel on speculation that economic growth will boost demand and also after some Nigerian militant seized an oil source. The Dow rallied 228.87 or 1.81% to 12849.36, S&P500 jumped 24.77 pts or 1.81% to 1390.33 and Nasdaq rose 61.14 pts or 2.61% to 2402.97.

Asian markets may jump higher at the open today following the strong close on Wall St last Friday. Positive earnings results from the US may have put some real confidence back into the Asian markets today. Investors however, might still choose to be careful with every news and results as some analysts still said that the rally may be short-lived. Markets today may have huge rally but investors may also stay cautious as oil prices hit all time high of $117 in the US on Friday. Oil refiners' profit are being reduced as higher oil prices means they have to pay more for raw materials. Crude oil was recently traded around $116.80ish, Gold was traded around $905ish, JPY traded around 103.50ish. Nikkei futures closed at 13790 in CME compared to the close of 13700 here on Friday.

Kospi may start the day higher today at around 233ish and may try and breach the 235 level today following the better-than-expected earnings from major financial companies like Citigroup and also Google. Tech sector may be boosted today and investors may gain more confident to invest in the market. Airlines companies may face more difficulties as oil touched new highs again on Friday at $117 per barrel.

Hangseng may start the day higher again today following the stronger close on Wall St last Friday. Hangseng may open around 24700ish and it may even test the 25000 level today should the investors stay positive from the US markets and if China's market post a rebound today. Tech companies may still play the biggest part in the rally while oil refiners and airline companies may weighed the market down.