Asian market preview 12/08/2008

US markets extended Friday's rally last night on lower oil prices but gains were limited by more credit worries around the country. Oil touched its lowest point since May at $112.72 per barrel and it caused stocks to shot up higher again and made the Dow to rise more than 130 points. However, comments from The Fed which said that about 75% of the banks it surveyed in July had increased requirements for prime mortgages, up from about 60% in April. Tighter lending standards means that it is more difficult to lend money that could stimulate the economy. In recent trading sessions, lower oil prices and the year-long credit crisis are competing for Wall St's attention, with oil pullbacks send stocks higher and credit-related news limited those gains. The Dow ended higher by 48.03 pts or 0.41% to 11,782.35, S&P500 rose 9.00 pts or 0.69% to 1,305.32 while Nasdaq rose 25.85 pts or 1.07% to 2,439.95.

Asian markets may open higher again today following the strong Wall St close last night and also the further declines in oil prices. However, China mainland markets may play a part in determining how strong the gains in those markets will be or will the markets loses steam again like yesterday. Oil was recently traded around $114.50ish per barrel, gold traded around $826.25ish and JPY traded around 110.05ish. Nikkei futures was closed at 13420 in CME compared to the close of 13365 here yesterday.

Kospi may open higher again today and may extend yesterday's rally with lower oil prices may fuel the buying power for investors. US markets were also driven by lower oil prices but the persistent credit crisis still lingers and haunt the markets. Kospi may find its support at 201 and its resistance at 206 today.

Hangseng may open higher and may be able to sustain its gains today if China markets are staging a rebound as Hangseng lost its steam late yesterday. Hangseng may open at around 21900ish and may go towards 22400 today if more investors are becoming optimists that lower oil prices may bring inflation down around the region. Hangseng may find its support at 21800ish and its resistance at 22400ish today.