Asian market preview 15/08/2008

US markets were closed higher for the first time in 3 sessions after oil prices dropped which sparked buying interest for investors and bargain hunters who seeks cheap, battered stocks especially in the financial sector. Crude oil fell 99 cents to settle at $115.01 per barrel and the pullback in oil reassure investors who are concerned that rising oil and energy prices would force consumers to keep paring back their spending. Markets fell in early trade after Labor Department reported another hefty jump in consumer prices. Consumer Price Index rose 0.8% in July, although this figure is not as high as June's increase, but it was twice as high as market expected and bring inflation to its highest annual pace in 17 years. The core index, eliminating food and energy prices, rose by a milder 0.3% last month. Labor Department also said that first-time claims for unemployment benefits fell by 10,000 last week, less than anticipated and it showed that labor market is still weak caused by weak economy. However, seeing how investors reacted to bad news and good news in recent weeks, the market may just be waiting for the right time to get into gear and have big rallies. The Dow ended up by 82.97 pts or 0.72% to 11,615.93, S&P500 rose 7.10 or 0.55% to 1,292.93 while Nasdaq rose 25.05 pts or 1.03% to 2,453.67.

Asian markets may open higher today following a mixed session yesterday. Most markets turned higher yesterday after initially opened weaker. The drop in oil prices overnight may help asian markets today and boost the markets around the region higher. However, with weekend around the corner, if markets in Asia can't get a big enough rally, it may go back down due to profit taking. Exporters may be boosted by stronger dollar. Oil was recently traded around $115ish per barrel, gold traded around $827.10ish and JPY traded around 109.70ish. Nikkei futures was closed at 12980, almost flat compared to yesterday's close of 12970.

Kospi is closed for public holiday today.

Hangseng may open higher today at around 21400ish and may go higher if investors decided to take opportunity with the battered market. Lower oil prices and stronger dollar may help boost the overall market. However, with olympic games still in session, trading volumes may still be light and the rally may not hold as much. China mainland markets may yet again play a significant part in determining how high the market will rise. Profit taking may take place around 21600ish. Hangseng may find its support at 21100ish and resistance at 21600ish today.