Asian market preview 28/04/2008

US markets were closed stronger and posted a back to back weekly gains on Friday after overcoming economic worries from the consumer sentiment index and the spike in oil prices. Investors saw that first quarter's earnings are not so bad and the financials sector is doing better than previously anticipated. Earlier in the day, University of Michigan released its reading of consumer sentiment index at 62.6 for April, which is the lowest since early 1980s. Microsoft's earnings was softer than anticipated but neither the sentiment index nor microsoft's weak earnings can make investors worry too much. They believe that the global and US' business activity remains strong despite the much anticipated recession fears. The Dow ended up 42.91 pts or 0.33% to 12891.86, S&P500 rose 9.02 pts or 0.65% to 1397.84 while Nasdaq fell 5.99 pts or 0.25% to 2422.93. More earnings to come out next week from food producers such as Kellogg Co., Kraft Foods Inc. and Burger King Holdings Inc. and also from consumer goods producer such as P&G Co. The Fed's rate decision also to come next week and more economic data is to be announced for investors to gauge the health of US economy.

Asian markets may open higher again today, extending the rally from last week after investors have gained more confidence in the US markets over the state of the country's economic condition. People have started to pour more money into stock markets again now and hopefully this will last longer than just a mere technical rebound. However, with the ever rising oil prices and other commodity prices, inflation problems is looming bigger than ever before and this may make investors feel more nervous regarding the economic health globally. Oil rose again on Friday and was recently traded around $119.40ish per barrel, gold traded around $890.15ish and JPY traded around 104.40ish. Nikkei futures closed at 14025 in CME on Friday compared to the close of 13905 here on Friday.

Kospi may open higher today at around 238.50 and may even test the 240 level today should the investors feeling more confident regarding the overall economic conditions. However, please also note that volatility in the merket may be high caused by some investors who want to enjoy some profit while they're winning. Market may lose some steam if there are no other positive sentiment to come out of the country itself.

Hangseng may open higher again today around 25800-25900ish today and may even test the 26000 level if regional market would support its rally. Chinese market may be the main driver again for Hangseng and if the investors believe that the Chinese government will do something else to boost the Chinese markets, I believe that Hangseng will run up again this week. Hangseng have rallied quite a lot the past 2 weeks and global market conditions seem to be giving more encouragement for Hangseng to run up further. If Hangseng able to breach 26000, it may find resistance at around 26200 and if Hangseng should fall, it may find its support at 25500.