Asian market preview 04/07/2008

US markets ended mixed on a shortened trading session last night after more mild economic data. The Institute for Supply Management said that its index of service sector activity fell to 48.2 from 51.7 in May. From the labor department, unemployment rate held steady at 5.5% last month but the government also reported 62,000 jobs lost in June, which was close to economists' forecast. Investors are nervous about the strength of the job market because, if more people lose their jobs, consumer spending will be less. Oil also touched fresh record high last night when it touched a high of $145.85 per barrel before settled at $145.29 per barrel, a record close. Investors will be looking at fresh insight next week with the arrival of corporate quarterly number. Alcoa Inc will unofficially start the earnings season and monthly sales report also due next week from retailers. The Dow ended the session higher by 73.03 pts or 0.65% to 11288.54, S&P500 rose 1.38 pts or 0.11% to 1262.90 while Nasdaq fell 6.08 pts or 0.27% to 2245.38. The US markets will be closed tonight for the 4th of July Independence Day holiday.

Asian markets may open slightly firmer today following US mixed close last night and slightly mild jobs number from the US. However, the gains may not hold as oil price touched fresh highs and if it keeps rising in the Asian session, investors would not like it. Asian markets have been oversold in recent weeks and some technical rebound may be in place today. Oil was recently traded around $145.20ish per barrel, gold traded around $933.65ish and JPY traded around 106.70ish. Nikkei futures closed at 13380 in CME last night compared to the close of 13180 here yesterday.

Kospi may open the day higher today after losing for the past 2 weeks. Trading volume may be thin today and hopefully it can sustain its gains until the closing time today. The first resistance may be at around 210ish today and if it can breach that level, it is possible for Kospi to get back towards 212ish and even 215ish later on. However, the gains may not hold as investors are still nervous as oil prices still at record highs. South Korea is still waiting on BoK's rate decision to come out next week.

Hangseng may open slightly higher today following a mixed session in the US and the shortened trading week over there. It may find its first strong resistance at around 21700ish today and may find its support at 21000. Investors may still take cues from the Chinese markets and see how the market over there is doing with the ever rising oil prices. Hopefully the market can sustain its gains until the end of the day but more nervousness among the investors may still weigh on the market.