Asian market preview 25/04/2008

US markets closed higher for second day last night after a surprise profit announced by Ford and after Merril Lynch said that they still have enough capital to maintain dividend. Retailers such as Macy Inc and Target Corp. rose after Dollar rebounded against the euro and after oil fell the most in a month. Markets initially fell after new home sales declined to the lowest since October 1991 but rebounded with good earnings report and financials got a boost. Initial claims unexpectedly drop and durable goods order jumped up exceeding expectations. All these data gave new speculations that the worst is actually behind us. The Dow ended higher by 85.73 pts or 0.67% to 12848.95, S&P500 rose 8.89 pts or 0.64% to 1388.82 while Nasdaq advanced 23.71 pts or 0.99% to 2428.92.

Asian markets may open higher in the last trading day of the week following the stronger-than-expected US data and earnings. However, investors may start to lock in profit today after a few days of gains this week. Oil prices fell the most and was recently traded around $115.90ish per barrel, gold traded around $885.25ish and JPY traded around 114.20ish. Nikkei futures closed closed at 13755 in CME compared to the close of 13450 here yesterday.

Kospi market may open higher again today at around 234ish and it may try to go towards 235 level today following the good US data overnight. Market may be volatile as investors may start to lock in profit going into the weekend. Strong market sentiment is there with the decline in oil and the rebound for US$.

Hangseng may open higher again today at around 25800 and it may test the 26000 level today following the strong close in Wall St overnight. China mainland market may still be in focus again after yesterday's huge rally of almost 10%. China markets may extend rally, but profit taking may also take place for investors as Hangseng have risen quite a lot the past week. If Hangseng able to breach 26000 level, it may try and go towards 26300 and if it fall, it may stay around 25400.