Asian market preview 02/05/2008

US markets were closed at the highest levels since January last night after better-than-expected economic data, tecnhology earnings, falling oil prices and the rally in dollar prompt investors to buy more stocks as they judge that the economy is starting to recover from its worst. Technology shares rally after better-than-expected earnings from symantec and comcast prompt investors to buy the battered tech stocks. Banks rally after The Fed's rate cut the day before also prompting investors to get their hands on the battered sector. Investors start to look away from commodities as dollar posted a big rally and closed at a 5-week high against the euro. The ISM manufacturing index came out better-than-expected and that complete the rally last night. Investors are waiting though for yet another dismal jobs report to be released later on tonight. The Dow was closed above 13000 for the first time since Jan 3, rising 189.87 pts or 1.48% at 13010. S&P500 rose 23.75 pts or 1.71% to close at 1409.34, its highest close since Jan 14. Nasdaq rallied 67.91 pts or 2.81% to close at 2480.71, its highest close since Jan 10.

Asian markets may open higher today after most markets were closed for a holiday yesterday. New found optimism from the US may be the driving factor for Asian markets and the lower oil cost may also play a part in the rally, easing inflation concern. Some Asian markets will be heading into a long weekend this week and that may limit the rise as investors may want to take some profit when the markets rise too much. Crude oil was recently traded around $112.26ish recently, gold traded around $852.30ish and JPY traded around 104.40ish. Nikkei futures closed at 14090 in CME compared to the close of 13810 here yesterday.

Kospi may open higher today at around 240ish and may even go higher boosted from chipmakers and exporters as new confidence in the US may prompt investors to buy more stocks. lower oil prices may hurt oil producers but will be an advantage to most companies such as airlines industries. The markets' gains may be limited later on in the day as Kospi will be heading into a long weekend this week. Kospi's range may be around 238-245ish.

Hangseng may shot higher at the open and may test the 26000 level today after a strong close on Wall St last night. If Hangseng managed to breach the 26000 level, it may go and rise towards 26300ish level. Rally may be supported by oil refiners as oil went down, exporters, banking and retailers. Chinese markets may also play a part in the rally if they continue on to rally again today. Should the Hangseng market fall, it may find support at 25600.