Asian market preview 15/07/2008

US stocks ended down last night after surging almost 140 pts in early trade. The early rally came after The Fed released a news on Sunday that they're ready to help Fannie Mae and Freddie Mac if necessary. The news supposedly gave assurance for investors and bring some calm to the market. However, the positive bias in the market were erased as investors' worries regarding the health state of financial sector resurfaced. Various rumors and sell-off in regional banks pull stocks downward as investors are also worried with the upcoming Q2 earnings report which they predict that banks and financial institutions will have more sizable writedowns to report. In other news, Yahoo Inc. revealed that it had rejected Microsoft's latest attempt to acquire the online search engine in a joint proposal made by activist Carl Icahn. On the earnings front to report this week includes Intel Corp., Coca-Cola Corp., Microsoft Corp. and Citigroup Corp. Dow ended down by 45.35 pts or 0.41% to 11055.19, S&P500 fell 11.19 pts or 0.90% to 1228.30 while Nasdaq fell 26.21 pts or 1.17% to 2212.87.

Asian markets may start the day lower again today following a rollercoaster ride session yesterday. Markets around the region started the day lower only to rally up and finally ended down yesterday. The worrying financial sector in the US may prove to be hard to avoid in Asia today and selling pressure may continue today. With oil price go back up above $145 region, it may just add more reason for investors to selloff stocks today. However, if there's some positive news to come out of the region or even the US, markets may have another volatile session like yesterday. Oil was recently traded around $145.06ish per barrel, gold traded around $970.60ish and JPY traded around 106.25ish. Nikkei futures closed at 12970 in CME compared to the close of 13055 here yesterday.

Kospi may start the day lower again today after rebounding late last week and the selloff continue yesterday. If investors are becoming even more nervous with the situation, Kospi may go back down below 200 region and towards 197ish region today. However, if there's some piece of positive news, it may rebounded back up towards 202ish region today. Yesterday, Kospi was lifted after POSCO gave out a positive forecast for 2nd half of the year.

Hangseng may start the day lower today after touching a high of 22380 yesterday. Volatility is expected to be high again today as investors are becoming more worried regarding the health of financial sector in the US. A rally in China mainland markets yesterday have also failed to boost stocks in Hong Kong as investors are becoming more nervous in the upcoming earnings season from the US. Hangseng may find its support at 21700 and may find its resistance at 22100ish today. Hopefully, some good news will come out of the China mainland and may give Hangseng a boost.