Asian market preview 30/05/2008

US markets ended the session higher last night after a good GDP report and a plunge in oil prices convince investors to put more money into the stock markets. GDP showed that the economy grew at 0.9% pace in Q1, better than previously stated at 0.6%. With this data, the US economy didn't have a quarter with negative GDP number and analysts believe that the recession in the US have been averted since recession is defined by 2 quarters of negative GDP growth. The rising dollar helped pushed oil downwards to settle at $126.62, which is the lowest close in 2 weeks. With good GDP and lower oil prices, investors have gained more confidence that the economy grow will pick up in 2nd quarter but it also means that The Fed may have to start to raise rates to stem inflation somewhere in September. The Dow ended up by 52.19 pts or 0.41% to 12646.22, S&P500 rose 7.42 pts or 0.53% to 1398.26 while Nasdaq rose 21.52 pts or 0.87% to 2508.32.

Asian markets may open higher again today and may continue their rally from yesterday. Nikkei, which had a biggest rally in the past few months may continue to rise again today after dollar strengthened against Yen and may help exporters to get more grounds in the market. The decline in oil prices may convince investors to put more money into the markets as it eases more inflationary pressure but may have significant impact on oil producers. Investors should also watch for profit taking as today being a Friday and after most markets gained quite a lot yesterday, there's also chance that people may want to enjoy profit today. Oil was recently traded around $126.39ish per barrel, gold traded around $876.85ish and JPY traded around 105.50ish. Nikkei futures was closed at 14240 in CME compared to the close of 14145 here yesterday.

Kospi may open higher today and may extend their rally from yesterday. A drop in oil and good US GDP data may helped push the market higher today and a better-than-expected earnings report from Dell may help push tech sector higher today. Kospi may open around 238ish and may even try to get to the 240 mark today if investors are confident enough. However, selling pressures may be seen as the market go near that area and do not forget today is a Friday and profit taking may even kick in after a market had a decent run up yesterday.

Hangseng may open higher yet again today and may hold onto its gains this time. A drop in oil and a good US GDP data may help push stocks higher today with investors come in as they believe that the global recession may have been averted. Hangseng may open at around 24500ish again today and if it can go past that, it may find its resistance at 24700. However, there's also chance that investors may want to have profit taking session again today as they don't want to go into the weekend with big positions. Hangseng may have its support at 24300 today. With May futures contract expired yesterday, the new June contract have about 100 pts discount to the money market.