Asian market preview 22/07/2008

US markets ended the session down modestly after crude oil rebounded more then $2 to settle at $131.04 per barrel. The rise in oil offset the initial market enthusiasm after Bank of America reported better-than-expected results which raised hopes that the credit crisis is easing. With Bank of America's results, 4 of 5 biggest banks in the US have reported better-than-expected earnings which might show that the financial sector is recovering from the credit crisis. However, with oil back to trade above $130 per barrel, market is still nervous and investors are also uneasy with the rest of the earnings season. Oil went back above $130 per barrel after fears that the tension in Middle East might escalate and also fears that Hurricane Dolly might disrupt supplies at gulf of Mexico. The Dow ended the session down by 29.23 pts or 0.25% to 11,467.34, S&P500 slipped 0.68 pts or 0.05% to 1,260.00 while Nasdaq fell 3.25 pts or 0.14% to 2,279.53. After hours, American Express reported earnings that missed analysts' estimates and also Apple provided a weaker Q4 forecast which send Dow futures tumbling down more than 100 pts.

Asian markets today may open slightly lower on some negative impact from the rising oil again and also with some negative news after hours on Wall St. However, losses may be limited and stocks may still prove quite attractive with major banks reporting good earnings over in the US which showed that the credit crisis maybe nearing the end. Oil was recently traded around $130.50ish per barrel, gold traded around $967.50ish and JPY traded around 106.40ish. Nikkei futures closed at CME at 13140 yesterday compared to the close of 13005 here on Friday. Nikkei was closed for holiday yesterday and may try to play catch up today with the rest of Asian markets.

Kospi opened lower today at around 200.75 this morning. It then went down further towards 200.35 before it started its climb towards 202 level. It reached its highest at around 8 AM at 202.15 and it went back down towards 201ish at around 8.15 AM. Kospi's session maybe volatile for the rest of the day with tech sector may weigh after Apple released weaker guidance ahead. Although banks have reported better-than-expected earnings in the US, American Express results which missed estimates may weigh today.

Hangseng may open slightly lower today after rising so much yesterday and may ignite some profit taking in the session. However, with strong sentiment across the region and also stock prices which can still be considered as in good valuation at this level may still spark some buying interests for investors. Hangseng may find support at 22400 and resistance at 22800 today. China mainland markets may play a big part too today in determining whether the rally will continue or will profit taking prevail today.