Asian market preview 16/05/2008

US markets closed higher last night as chipmakers boost markets after analysts said that chipmakers will benefit from rising global demand and also said that energy shares are cheap compared to crude prices. Markets also rose after crude prices drop again today easing inflationary concern. Positive news came from all directions as Philly Fed said that regional manufacturing activity is contracting at a slower pace in May compared to April. Deals are also being made for GE and CBS and this showed that companies are able to make strategic purchases and sales. Tech sector got a boost from Intel, rising 4.7% after Lehman Bros analyst lifted its price target, citing strong product demand. There are some worrisome news too as nationwide industrial output sank again in April by 0.7% due to cutbacks in automotive and other manufacturing industries. The Labor Department also said that the number of jobless claims rose last week by 6000 to 371k, suggesting that the labor market remains weak but still within analysts' estimates. The Dow ended up by 94.28 pts or 0.73% to 12992.66, S&P500 rose 14.91 pts or 1.06% to 1423.57 while Nasdaq rose 37.03 pts or 1.48% to 2533.73.

Asian markets may open stronger again today following more positive news and outlook from the US and after oil prices went lower last night. The economic news from the US suggesting that they're on the process of skirting recession. Oil was recently traded around $124.30ish per barrel, gold traded around $881.70ish and JPY traded around 104.86ish. Nikkei futures settled at 14340 in CME last night compared to the close of 14290 here yesterday.

Kospi may open higher and may extend yesterday's 2% rally today following more good news from the US and boost from the tech and chipmaker sectors. If more positive news to come out of South Korea, Kospi may try to go towards the 250 level today. However, as today is a Friday, investors may want to lock in recent profit as Kospi has recently gain quite a lot. Volatility may be high and Kospi may range between 242ish-247ish.

Hangseng may open higher again today following the gains in the US and also regional market strength. Hangseng have been doing V-shaped movement for the past 2 days, being down in the morning and recover in 2nd session. Hangseng may open up around 25600ish and may go towards 25800ish. If Hangseng can breach 25850, it may go towards 26000 today. However, profit taking may yet again dominate the market today as investors may also still be looking to China markets for news and the impact of the giant quake that shook China on Monday. If Hangseng fall again, 25000 should hold a strong support point.