Asian market preview 23/04/2008

US markets fell overnight after earnings report and forecasts failed to impress investors and also concerns that high oil prices will add to inflation pressure. The company reporting earnings mostly met with analysts' expectation but their comments about future earnings made investors worry as economic slowdown looks likely, earnings will be hurt and companies lower their estimates. AT&T and Texas Instrument met analysts' estimates while McDonald's and DuPont exceed their estimates but comments from respective companies made investors nervous. More companies are to report earnings and the initial prospect of a stronger-than-expected earnings season more likely do not happen as some analysts predicted. Economic slowdown is going to hurt companies more than expected. The Dow fell 104.79 pts or 0.82% to 12720.23, S&P500 fell 12.23 pts or 0.88% to 1375.94 and Nasdaq fell 31.10 pts or 1.29% to 2376.94.

Asian markets may open lower today extending their losses from yesterday following the poor performance by the Dow. More worries by investors regarding the global economic outlook is going to play a major part in the markets movement. However, oil producers may be supporting the market after oil prices breached the $119 mark overnight. Oil was recently traded around $118.05ish, gold traded around $915.70ish and JPY traded around 102.80ish. Many companies may be hurt with high oil prices as inflation pressure may add to the concern to regional markets. Nikkei futures closed at 13520 in CME compared to the close of 13560 here yesterday.

Kospi may open lower again today around the 229-230ish level and it may go down further after concerns that earnings will not be as beautiful as expected in the US and recession may still be inevitable. However, judging from the past few days performance by Kospi, market may hold around 226ish and may go up to around 232ish.

Hangseng may open lower again today after a surprise surge in the 2nd session yesterday following the rebound made by China markets. Hangseng may open around 24800-24900ish level and may hold strong around 24600ish if it decided to go down. If it's able to break the 24500 level, it may go towards 24300 and if it can breach the 25000, it may go above towards 25200. Chinese markets may be in focus again today and after Hong Kong released a not-so-bad inflation data, market look to be quite strong to withstand the pressure from the US.