Asian market preview 13/05/2008

US markets were closed higher overnight after oil dropped for the first time since May 1, retailers rallied in anticipation of better-than-expected earnings and financial shares climbed after MBIA, the world's largest bond insurer, said it has enough cash to cover claims. Wal Mart Inc. jumped on speculation profit grew as discounts lured shoppers away from competitors. Oil price dropped after briefly touched new highest intraday at $126.40 and it eased inflation concern a little bit. Stocks were also boosted by earnings outlook at Apple Inc. and Research in Motion Ltd. as investors were betting these companies will benefit from new phones. M&A rumors and speculations boosted mining shares. Analysts believe that the subprime crisis is 75% done but recession has just started. Most of the earnings from companies showed positive signs and that may move the markets higher. The Dow finished up 130.43 pts or 1.02% to 12876.31, S&P500 rose 15.31 pts or 1.10% to 1403.58 while Nasdaq rose 42.97 pts or 1.76% to 2488.49.

Asian markets may open higher today tracking Wall St gains overnight as oil prices dropped may ease some inflation concerns around the region. However, investors may be watching closely on the development in China after a deadly quake killed over 10,000 although sources said that the impact on the economy is limited for now. Oil prices dropped last night after making $10 rally the past week. Oil was recently traded around $123.80ish per barrel, gold traded around $881.35ish and JPY traded around 103.80ish. Nikkei futures was closed at 13840 in CME compared to the close of 13785 here yesterday.

Kospi may open higher today following US strong close last night and after a holiday yesterday. It may open around 236-237ish and may go higher as the drop in oil may give some confidence back to investors. Corporate news from the country may be watched closely as investors will gauge the market and take cues from there.

Hangseng may open higher after a long weekend and also following US strong close overnight. It may open around 25000ish and may have a rebound after dropping more than 1000 points towards the end of last week. However, China quake news may be in focus and investors may watch closely on the China markets after the Chinese government released a stronger CPI data yesterday. If Hangseng can break the 25200 level, it may try to go towards 25500 and if Hangseng fell again, it may find 24700 as support.