Asian market preview 21/07/2008

US markets ended a fabulous week mixed on Friday after disappointing results from tech giants brought investors back down to earth. Less-than-estimated loss from Citigroup Inc. pleased investors and joined Wells Fargo & Co. and JPMorgan Chase & Co. in delivering stronger results than anticipated. However, tech giants like Google, Microsoft and AMD all reported less-than expected results and that caused selloff for those companies. More earnings from banks are expected this week and that will make investors stay on edge to brace for more bad results or if this situation is turning into a positive one. Many analysts believe that the US are still far from turning around the bear market into a bull market in current conditions. The Dow rose 49.91 pts or 0.44% to 11,496.57, S&P500 rose 0.36 pts or 0.03% to 1,260.68 while Nasdaq fell 29.52 pts or 1.28% to 2,282.78.

Asian markets may have a positive start to the week today following more upbeat earnings from the US banks and that may ignite another round of buying into stocks around the region. The lower oil price where it managed to stay below $130 per barrel may also cheer investors and may help boost the stock markets further today. However, with tech giants such as Google and Microsoft reported weak earnings, that sector may drag Asian tech counterpart too. Oil was recently traded around $129.97ish, gold trade around $964.50ish and JPY traded around 106.95ish. Nikkei futures was closed at 13145 in CME compared to the close of 13005 here on Friday. Nikkei will be closed for public holiday today.

Kospi may start the day higher today following better earnings from banks in the US and lower oil prices. Tech sector may drag the market down though but the overall sentiment today may stay positive. Kospi may test the 200 mark again today but with more bank and other corporate giants earnings from the US, many investors may still choose to stay on the sidelines today. Kospi may find its resistance at 198 and 200 while its support at 194 today.

Hangseng may start the day on the positive today following the gains on Wall St and also the strength from regional markets. Lower oil prices may boost bargain hunters to hunt for stocks in current prices and more positive results from Chinese banks may boost market sentiment today. However, many investors may still be waiting on the sidelines today in anticipation of more earninngs to come out of the US this week. Hangseng may test the 22000 mark today and may well be close above that level today. It may open around 22200ish today and may find its resistance at 22400 and its support at 21800 today. Hangseng may still turn to China mainland markets for more cue and directions as to where the market want to go today.