Asian market preview 19/05/2008

US markets were closed mixed on Friday as investors were worried with the surging energy prices that overshadowed the surprise increase in home construction. Investors were cheered when commerce dept's report that home construction jumped 8.2% in April but were sidetracked as energy and food prices keep climbing up which in their opinion will affect consumer spending. Oil reached its highest yet again at $127.82 per barrel and it's weighing on the mood of consumers. The Michigan consumer sentiment reading fell to 59.5 in May, the weakest since June 1980. Analysts said that investors are worried that the economy recovery expected in 2nd half will be derailed if energy and food prices keep climbing up. The Dow ended down 5.86 pts or 0.05% to 12986.80 and ended the week higher 1.89%.S&P500 ticked up 1.78 pts or 0.13% to 1425.35 and ended the week higher by 2.7%. Nasdaq fell 4.88 pts or 0.19% to 2528.85 and ended the week higher by 3.41%. Gold and other metal prices also rose with China Quake is still in focus while Dollar fell against major currencies.

Asian markets may open quite flat today and most markets may trade in narrow range today as there are lack of market moving news from the US and China. Investors may focus on the ever rising crude price, which also affect the rise in food price and the impact it will bring to the region's inflation issues. Crude oil started Monday trade at around $126.30ish per barrel, gold traded around $903.35ish and JPY traded around 104.10ish. Nikkei futures were closed at 14310 in CME compared to the close of 14340 here on Friday.

Kospi may open rather flat around 244ish and may rise with Merril Lynch said that the stocks prices in Korea is cheap. However, with lack of fresh market moving news, the rise today maybe modest and investors may also want to take some profit should the market rise too much. High crude price may also impact the market and may drive market lower as it will affect consumer spending.

Hangseng may open quite flat tracking regional markets at around 25600ish today and any rise in the market may be led by cement and other metal producers on the wake of China quake and the need of rebuilding over in the region. Investors may turn to China market for more news regarding the quake after new tremors hit the region on Sunday and more market moving news as there are lack of fresh news which will boost the Hangseng from US. Trading range maybe thin today with 25800 seen as a near term resistance and 25400 as near term support with 25200 as a very strong support point. It'll be no surprise if investors decided to lock in profit with high crude price affecting the way investors look at the overall market and inflation issues.