Asian market preview 14/05/2008

US markets were closed mixed last night after a retail sales report came out as expected and as oil spiked to new intraday highs. Wal-mart beating earning forecast by 1 cent a share but its Q2 outlook made investors nervous and its shares fell by 2%. Energy producers helped rally after oil spiked to new high caused by output cut considered by Iran. Commerce Dept showed that retail sales fell by 0.2% in April, as expected. The numbers are coming out weak but it's still as expected and that the economy is not falling apart as first anticipated by analysts. Many analysts believe that investors are going to focus on the macro data and any adverse piece of news regarding credit markets. The Dow fell 44.13 pts or 0.34% to 12832.18, S&P500 fell 0.54 pts or 0.04% to 1403.04 while Nasdaq rose 6.63 pts or 0.27% to 2495.12 after Yahoo gets a proxy bid by Carl Icahn.

Asian markets may open flat but may rise following a more positive outlook for the US economy. High oil prices may boost producers and Japan's Nikkei may be boosted by the strength in Dollar. Oil was recently traded around $125.75ish per barrel, gold traded around $865.25ish and JPY traded around 104.60ish. Nikkei futures closed at 13975 in CME compared to the close of 13965 here yesterday.

Kospi may open around 238ish and may move higher again towards 240 during the day today. However, investors may also want to take quick profit with high oil prices giving them more uncertainties. Overall, market outlook still bullish and if it can breach 240 level, it may go even higher.

Hangseng may open flat around 25400ish and may continue the rally from yesterday to complete a rebound. However, index may find it hard to breach 26000 level with the lack of very strong positive data in the market. Hangseng market may turn to China for more news and updates regarding the giant quake although many believed that the impact on the economy is very limited. Hangseng may move towards 25700 and if it fell, it may hold at 25000 today.