Asian market preview 01/09/2008

US markets tumbled on Friday after the government said that personal incomes fell last month by the largest amount in 3 years while consumer spending slowed. Disappointing report from Dell Inc. also weighed on Nasdaq. Commerce Department reported that personal incomes fell by 0.7% in July, more than the 0.1% predicted by analysts. Consumer spending also rose modestly by 0.2% compared to the 0.6% increase seen in June. There are also better report for Chicago Purchasing Managers Index where it jumped to 57.9 from 50.8 in July. However, the bad report in personal incomes and consumer spending, also the high oil prices due to fears of hurricane Gustav weighed on the markets more. Traditionally, September is believed to be a weak month for stock markets as analysts believed. Nymex electronic trading is available on Sunday in a special session as hurricane Gustav approaches. Analysts believe that Gustav may be worst than Katrina and crude oil price rose $2.21 to $117.37 per barrel as of 3:27 PM New York time. The Dow ended lower by 171.63 pts or 1.47% to 11,543.55, S&P500 fell 17.85 pts or 1.37% to 1,282.83 while Nasdaq fell 44.12 pts or 1.83% to 2,367.52.

Asian markets may open lower today following more bad news from the US and also after the markets plunged on Friday. The weak personal incomes and consumer spending numbers from the US still indicated that the US' economy is still weak and a lot of work still needs to be done. Higher oil prices as Gustav approached closer to the gulf of mexico may also hurt oil sensitive stocks and may affect the overall market around the region. Crude oil was recently traded around $116.70 per barrel, gold traded around $835.20ish and JPY traded around 108.20ish. Nikkei futures was closed at 12950 in CME compared to the close of 13035 here on Friday.

Kospi may open lower again and may go further lower after it was closed at its lowest point for this year on Friday. Foreigners may still be net sellers and local investors may also dump more stocks today as confidence is growing thin for Kospi market. Fears of higher oil prices may also weigh on market as higher oil means higher inflation for the country. Kospi may open around 187-188 and may go down further towards the 185 level. It may find resistance at 191ish today and support at around 185ish.

Hangseng may open lower today after it gained grounds on Friday after positive news on US data. However, as US data showed more weakness in the economy, Hangseng may fall again today. Hangseng may open at around 21100ish and may fall to below 21000 again today. It may find support at 20800 and resistance at 21300 today. China mainland markets may also play a part in today's session as volatility may be high too today with oil prices may be in focus for oil sensitive stocks.