Asian market preview 04/09/2008

US markets were closed mixed last night as investors still unsettled about the economy ahead of Friday's employment report and only sliding commodities prices gave some support for the market. Good news came from Commerce Department where it reported a 1.3% increase in orders for manufactured products, compared to the 0.8% predicted by economists. However, that piece of good news was shrugged off by investors as automakers released sluggish August sales and The Fed reported weak economic activity throughout the nation. Meanwhile, oil continued its sliding path, touching briefly below $108 per barrel before it settled down 36 cents at $109.35 per barrel. The troubled financial sector also drew some bargain hunters on positive news for big names such as Ambac, Freddie Mac and Lehman Brothers Inc. The Dow ended up by 15.96 pts or 0.14% to 11,532.88, S&P500 fell 2.60 pts or 0.20% to 1,274.98 while Nasdaq fell 15.51 pts or 0.66% to 2,333.73.

Asian markets may open around yesterday's closing price with somewhat flat bias throughout the day. With oil stayed below $110 per barrel, it may give more confidence for investors to buy into the stock markets but more uncertainties from the US may prevent markets to rally much today. Commodities related companies may be hit hard again today with the continued fall in oil and other commodities. Oil was recently traded around $109.35ish per barrel, gold traded around $808.20ish and JPY traded around 108.25ish. Nikkei futures was closed at 12650 in CME compared to the close of 12630 here yesteday.

Kospi may open at around yesterday's closing price and may move within the same range as the yesterday. Government's attempt to curb the weakening Won may help and give hopes for investors to buy into the stock markets. However, if regional market sentiment is still weak, Kospi may be pressurized further. Bargain hunting may kick in and help to give market some ray of hope and may cause high volatility in the market. Kospi may find its support at 182ish and its resistance at 187ish today.

Hangseng may open at around yesterday's closing price but it may change if regional markets move in a drastic way whether it's up or down. With Hangseng being battered badly yesteday, some technical rebound may happen in early trade. Bargain hunters may kick in and try to get cheap stocks as oil stayed below $110 per barrel. However, weak market sentiment from US and other markets such as China may limit Hangseng's rally today. Hangseng may find its support at its year's lowest point of 20300ish and its resistance at 20800ish.