Asian market preview 29/05/2008

US markets finished the session moderately higher for 2nd straight session last night. Better-than-expected durable goods data helped push stocks higher and a rebound in oil helped oil producers and commodity related stocks to rebound from previous day's losses. Financial sectors weigh on the market though and caused markets to be very volatile last night. Analysts thought that the recovery in the financial sector may take very long to complete and that negative sentiment certainly pushed the group down. The Dow ended up by 45.68 pts or 0.36% to 12594.03, S&P500 rose 5.49 pts or 0.40% to 1390.84 and Nasdaq rose 5.46 pts or 0.22% to 2486.70.

Asian markets may open the day higher again today after ending the session lower yesterday caused by the sharp dip in oil prices weighed on oil producers. Today however, markets around the region may rise and get some rebound from yesterday's losses. Market volatility maybe high as higher oil prices may drive oil producers such as Inpex to get some rebound but still weigh on other sector with inflationary fears mounting yet again. Oil was recently traded around $130.58ish per barrel, gold traded around $902.15ish and JPY traded around 104.62ish. Nikkei futures closed at 13910 in CME last night compared to the close of 13830 here yesterday.

Kospi may start the day higher yet again today at around 233ish and may rise to get some rebound after ending the session lower yesterday. A selloff in equities was sparked yesterday as oil prices dipped sharply from record and also was pushed down by LG electronics. If investors are confident enough, the index may reach the 235ish mark again but if it can breach yesterday's intraday low at 230.75, it may continue down further towards 228ish.

Hangseng may start the day higher today at around 24300ish today and with May futures contract set to expire today, it may drive the market higher and get some rebound today. Oil producers such as CNOOC which was battered yesterday may stage a rebound today and investors may start buying into banks again today. Hangseng may find its strong resistance at around 24500 and if it should fall below the 24100 mark, it may find a strong support at 24000 today.