Asian market preview 29/04/2008

US markets were closed mixed but with most stocks gained some grounds ahead of The Fed's 2 days policy meeting, which starts on Tuesday. Most stocks were up after major M&A actions were made by Mars Inc. to acquire Wrigley Jr. Co. and billionaire Kirk Kerkorian plans to make an offer that would expand his stake at Ford Motor Co. to 5.6%, saying he sees signs the automaker's turnaround plan is working. Investors saw that the dealmaking as an encouraging signs that companies are still willing to make M&A happen. However, investors are holding their breath ahead of The Fed's decision where most investors are betting on another quarter point cut. The Dow ended down 20.11 pts or 0.16% to 12871.75, S&P500 slipped 1.47 pts or 0.11% to 1396.37 while Nasdaq rose 1.47 pts or 0.06% to 2424.40.

Asian markets may open rather flat with an upward bias today after more optimism were poured into the US markets and after some analysts encourage investors to buy into stocks. However, investors may not want to bet too much into the market ahead of The Fed's 2 day policy meeting. Crude oil rose to almost $120 and was recently traded around $118.70ish per barrel, gold traded around $891.50ish and JPY traded around 104.20ish. Nikkei futures was closed at 14015 in CME overnight compared to the close of 13965 here yesterday. Nikkei is closed for a public holiday today.

Kospi may open rather flat at around 236ish today. It may rise further towards the 238ish level but investors may not want to bet too much on the market and may want to enjoy some profit after the market has gained quite a lot the past 2 weeks. Volatility in the market may be high and news from South Korea itself may be moving the market.

Hangseng's April contract is expiring today and the new May contract has started trade since yesterday. Hangseng's old contract may open around 25600 and new contract around 25500. Hangseng may watch closely on the Chinese markets for directions today as US markets turned slightly cautious ahead of The Fed's meeting. Profit taking may be in session today as futures contract is expiring. If Hangseng(New) able to breach 25700, it may try to go towards 25900ish or even 26000. However, if Hangseng fall towards 25300ish, it may find support around 25200.