Asian market preview 07/05/2008

US markets were closed higher overnight despite of oil reaching record price yet again. Investors believe that the economy is on its way of recovering and that the financial sector have already bottomed out. Investors have already expected financial and housing earnings to be sluggish this quarter and for them, earnings outside those sectors are the main focus. In recent weeks, earnings besides financial and housing sectors have shown that the economy is doing quite well withstanding the decline caused by the credit and housing markets. The only main concern now is the ever rising oil price, which already struck the highest intraday close to $123 per barrel. The Dow closed higher by 51.29 pts or 0.40% to 13020.83, S&P500 rose 10.77 pts or 0.77% to 1418.26 while Nasdaq climbed 19.19 pts or 0.78% to 2483.31.

Asian markets may open higher again today following the strong US close last night caused by more investors' confidence which keep on pouring into the market. Oil players maybe the main driving factor for the market while oil refiners may drop further as oil rose to record close of $121.84 per barrel on Nymex. Recently, oil traded at $121.70ish per barrel, gold traded around $875.85ish and JPY traded around 104.66. Nikkei futures closed at 14200 in CME compared to the close of 14110 here last Friday. Nikkei are set to open today after closing for 2-day public hoilidays.

Kospi may open higher and may continue the rally from yesterday as new found optimism in the US may drive the market higher yet again today. Kospi may test out the 243ish level today should investors want to bet into the recovering economy. Tech sector may drive the market today as Cisco reported good earnings. Oil refiners may drag the market but overall, market seems to be quite strong.

Hangseng may open higher and may continue the rally from yesterday. It may open around 26300 and may go up further towards 26500 if the market is strong enough. China mainland market may be in focus again today as GDP number is almost out in China and that the fear of more tightening measure may come back. Oil refiners such as Sinopec and China Petroleum may drag the market today and profit taking may happen around when the market have risen too much today. Should Hangseng fall, it may find support at 26000.