Asian market preview 22/04/2008

US markets ended the session mixed following a disappointing results from Bank of America and National City Corp. and also after another record price set by oil. With the lack of economic data to come out this week, investors decided to cash in on their recent profit and sit on the sidelines, waiting for more corporate reports. Cautious mode is back in the markets and investors would choose to sell on news and they buy again on bargain prices. Analysts predicted that the markets may move in the tight range fluctuating up and down while investors evaluate the health of the economy. Merck, the largest pharmaceutical company reported better-than-forecast earnings last night after profits were nearly doubled. Apple Inc. helped boost Nasdaq overnight after analysts' lifted Apple's price target; Apple rose $7.12 or 4.4% to $168.16. The Dow lost 24.34 pts or 0.19% to 12825.02, S&P500 fell 2.16 pts or 0.16% to 1388.17 while Nasdaq rose 5.07 pts or 0.21% to 2408.04.

Asian markets may open rather flat today with a slight downside bias following another bad performance by financial sector over in Wall St last night. Investors may be cautious again following the report from US which indicated that the financial sector is still struggling. Rising oil prices may weigh on some stocks like airlines but may boost oil producers companies. Crude oil rose to a record last night and was recently traded around $117.50ish per barrel, gold traded around $915.50ish and JPY traded around 103.30ish. Nikkei futures closed at 13700 in CME overnight compared to the close of 13620 here yesterday.

Kospi may open rather flat around 231-232ish level today following the mixed close on Wall St overnight. Some selling pressure due to profit taking may take place today in the market but strong buy may still be there depending on the corporate news to come out of the country. Trading range may be small and volatility may be high today with investors selling and buying at bargain prices.

Hangseng may open around 24500-24600ish today and may have a profit taking session during the day. China's mainland markets may be in focus again to see if the rebound yesterday is going to last long. Some positiveness in the market is still there for Hangseng and market may move in a more volatile way today with energy shares and tech shares dominate the market. If market able to breach the 24900 mark, it may go towards 25000 and if market able to breach 24500 mark, it may go down towards 24300 level today.