Asian market preview 23/06/2008

US markets were sent tumbling down and Dow was closed at its lowest level since March 17 on Friday on renewed credit concerns and after oil rebounded on increased tension in Israel. Downgrade in automakers also made investors to sell stocks in the Friday afternoon and Treasury prices rose as investors seeks safe haven. Merril Lynch downgrade of regional banks added to the market's anxiety after Citigroup's warning of more writedowns in Q2. Washington Mutual Inc. announced 1200 job cuts and Moody's investors service decided late in the day to downgrade both insurers. Concerns over further tensions between Israel and Iran added investors' worries and pushed crude oil higher. Crude oil jumped $2.69 to settle at $134.62. The Dow ended down by 220.40 pts or 1.83% to 11842.69, S&P500 fell 24.90 pts or 1.85% to 1317.93 while Nasdaq fell 55.97 pts or 2.27% to 2406.09. For the week, Dow fell 3.78%, S&P500 lost 3.1% and Nasdaq fell 1.97%.

Asian markets may open lower again today following Wall St tumble on Friday on renewed credit market concerns and also after oil spiked up. However, there may be a ray of hope after Saudi Arabia said that they're ready to pump more oil if needed and a lower oil prices may stimulate buying opportunity in the markets when the markets get too low. Saudi Arabia's capacity will be 12.5 million barrels per day by the end of 2009 and may get to 15 million if necessary to get a reasonable price on oil. Oil was recently traded at around $134.90ish per barrel, gold traded at $903.70ish and JPY traded around 107.40ish. Nikkei futures closed at 13750 in CME compared to the close of 13920 here on Friday.

Kospi may open lower today at around 219-220ish and may fall further if investors decided to sell stocks amid more uncertainties in the US markets. Exporters may drag the market lower as US$ weakened against major currencies. However, with Saudi's new oil pledge, lower oil prices are in sight and investors may see it as opportunity to get into the market when the market is oversold.

Hangseng may open lower again today at around 22400ish after the US markets tumbled on Friday. If investors see this opportunity to do a selloff, the market may even test the 22000 mark, but if China mainland markets continue to rebound, Hangseng may have limited losses today. Hangseng may find its first strong support at 22200 and its resistance at 22700 today.