Asian market preview 17/06/2008

US markets finished mixed last night after oil touched a fresh record high of $139.89 and then retreat back to close lower. Comments from Richmond Fed President Lacker said that downside risks to growth have diminished and reversing previous interest rate cuts seems to make sense also weigh some of the stocks in the Dow. The decline in regional manufacturing activity also weigh stocks in the morning before the market clawed its way back up. Manufacturing in NY fell to -8.7 from a -3.7 a month earlier and this showed the economy is still slowing down. However, reports from Lehman Bros helped stocks and the financial sectors and showed investors that the financial sectors are showing more stability now. The Dow fell 38.27 pts or 0.31% to 12269.08, S&P500 climbed 0.11 pts or 0.01% to 1360.14 while Nasdaq rose 20.28 pts or 0.83% to 2474.78.

Asian markets may open higher again today following yesterday's rally and more optimism found in the US markets regarding financial sectors and also the decline in oil prices. Investors may start to go back to stocks with more stability shown in the US for the past few days and they'll wait for more US data to come out today in form of housing starts and more from Goldman Sachs. Oil was recently traded around $134.40ish per barrel, gold traded around $881.80ish per barrel and JPY traded around 108.14ish. Nikkei futures closed at 14390 in CME compared to the close of 14360 here yesterday.

Kospi may open around 227ish today and may extend its rally to climb back towards the 230ish level. However, trading may be volatile yet again today as investors may also choose to wait for more US data to really gauge the health of the overall economy. Kospi may find its support at 225 and its resistance at 230 level today. Tech sectors may lead the way today and also the financials may make a run too after more stability shown from Lehman in the US.

Hangseng may open to the upside around 23000-23100ish today and may extend yesterday's rally. Mainland China markets may still be closely watched by investors to see if there's any reason to continue the climb further. Investors may start to put in more money with more optimism from the US and the health of the global economy is showing signs of improvement. Hangseng may find its support at 22800 today and its resistance at 23500. Trading may still be volatile should investors choose to wait and see for more market moving news from the US later on tonight and also if China is to come out with measures to boost stock markets.