Asian market preview 28/05/2008

US markets closed higher after a session of nervous trading around the markets. Investors were provided with better-than-expected new home sales data and that boost stocks a bit. A drop in oil prices also helped to push stocks higher around the markets. However, with lots of uncertainties still linger in the air, investors seems to be reluctant to put in big bets into the markets and prefer to wait and see for more cues about the economic condition with more data due out later on this week. Home prices dropped to a 14-year low but new home sales were up 3.3% from last month which gives a little bit good sign for investors. Technology shares got a boost after analysts encourage to buy into the sector and homebuilders also get a boost with the new home sales data. In other news, consumer confidence dropped to its lowest level since October 1992. The Dow ended up by 68.72 pts or 0.55% to 12548.35, S&P500 rose 9.42 pts or 0.68% to 1385.35 while Nasdaq rose 36.57 pts or 1.5% to 2481.24.

Asian markets may open higher today following the mild gains on Wall St overnight. The drop in oil prices to below $130 per barrel may help stocks which rely on oil and may boost the overall market. However, with Wall St only gained mildly, investors may also want to be cautious ahead of more economic data to come out of the US and may cause volatile trading in the markets around the region. Oil was recently traded around $128.44ish per barrel, gold traded around $905.75ish and JPY traded around 104.22. Nikkei futures was closed at 13965 in CME compared to the close of 13885 here yesterday.

Kospi may open higher today around 236-237ish and may extend its rally from yesterday following a better-than-expected US new home sales data. However, with more economic data due out later on in the week, investors may not put in too much money into the market and after yesterday's big gain, there's also a slight chance that investors may want to sit out on the sidelines. Trading maybe volatile with tech sector may play a big part to boost the market today. With oil dropped below $130 per barrel, consumer may become slightly a bit more optimistic.

Hangseng may open around 24300ish today following regional for higher open today after US perform mildly better last night. With oil dropped to below $130 per barrel, oil refiners such as Sinopec and PetroChina may get a boost today but CNOOC may be sluggish. Chinese mainland market may yet again play a significant role in determining how the market will end today. Trading maybe volatile and Hangseng may test the 24500 mark today and may find its strong resistance at 24000.