Asian market preview 08/08/2008

US markets were closed lower overnight in another triple digit session on concerns about further troubles in the financial sector, higher unemployment and lackluster retail sales. On top of the list of worries, American International Group Inc.(AIG), reported a loss of more than $5 billion for Q2 the stock fell $5.25 or 18%, the most since it went public in 1969. Labor Department also reported that the number of newly laid off people seeking jobless benefits last week jumped 7,000 to 455,000 last week, its highest level in more than six years. Weak sales report from Wal-Mart Inc and other retailers also added to investors' unease. Another disturbing news came from Moody's when it put American Express Co. on review for a possible downgrade in ratings. Oil prices which have been on downside trend, rose last night to settle at $120.02 per barrel, adding to Wall St's selling mood. A positive light came from National Association of Realtors when it reported its seasonally adjusted index of pending sales of existing homes rose 5.3% in June from prior month, rather than declining as expected by analysts. The Dow ended down by 224.64 pts or 1.93% to 11,431.43, S&P500 fell 23.12 pts or 1.79% to 1,266.07 while Nasdaq fell 22.64 or 0.95% to 2,355.73.

Asian markets may open lower today following more worries about the US' financials sector. The rise in oil prices also may add worries to the regional markets. Finally, being a Friday today, markets may be in profit-taking mood and it may cause further downfall in the markets around Asia. Oil was recently traded around $120.10ish per barrel, gold traded around $873.40ish and JPY traded around 109.40ish. Nikkei futures closed at 13095 in CME last night compared to the close of 13175 here yesterday.

Kospi may open lower today and may go well below 200 mark again. More downside risk is there if Kospi closed below 200 today. With more financial sector worries came out of the US and the seemingly endless economic problems may add to the selling factor for Kospi. Investors may also be in selling mood with oil price started to climb back up. Kospi may find support at 197 and resistance at 201ish today. However, with selling have already started yesterday, Kospi may not lose too much today.

Hangseng may open lower today following US markets' tumble on fresh economic and financials concerns. The rising oil price also may add to investors' worries today. China mainland markets may also play a part in determining how Hangseng will fare today. The Beijing olympics will kick-off tonight and that may bring some positive light to the region. Hangseng may open around 21900ish and may find its support at around 21700ish and its resistance around 22200 today.