Asian market preview 09/09/2008

US markets soared last night following after news came out on Sunday that the government have taken over Freddie Mac and Fannie Mae. The markets rallied alongside Europe and Asia, staging one of the biggest 1 day rally around the world. The takeover was cheered by investors and it boosted confidence for financials and home builders. However, the move did not immediately help all areas of the economy for example tech which was battered badly last week. Analysts believe that the rescue for both companies may provide a short-term rally and lessened the bear grip on the market. Financials and home builders provided boosts for the markets while Tech sector still quite lagging behind on worries that global slowdown may slow demands. Crude oil price rose slightly on fears that hurricane Ike may be on its way to oil infrastructure in the Gulf of Mexico. Light sweet crude rose 11 cents to settle at $106.34 per barrel. The Dow ended up by 289.78 pts or 2.58% to 11,510.74 after being up nearly 350 pts earlier. S&P500 rose 25.48 pts or 2.05% to 1,267.79 while Nasdaq rose 13.88 pts or 0.62% to 2,269.76.

Asian markets may open around yesterday closing price with more upward bias today as most markets have staged quite a big rally yesterday. It is not surprising if some markets may also pullback some of the gains from yesterday as markets rose quite sharply for 1 day. Financials and banks may still provide the steam for today's advance but fears of hurricane Ike may cause oil price to rise and in turn may drag some markets around the region. Oil was recently traded around $106.34ish per barrel, gold traded around $802.50ish and JPY traded around 108.10ish. Nikkei futures was closed at 12540 in CME compared to the close of 12660 here yesterday.

Kospi may open around the same price as yesterday and may still rise further today if there are more market boosting news such as a stronger Won. However, a pullback is not surprising considering that the market rallied more than 5% yesterday. Investors may also still be cautious ahead of more economic data to come out of the US later on this week, and also the fate of commodity prices will be closely watched by investors. Kospi may find its resistance at 193ish and its support at 188ish today.

Hangseng may open around yesterday's closing price with some upward bias. However, with China markets dragging like yesterday, Hangseng may lose some steam and may also be dragged lower by China mainland markets. Yesterday's rally was quite big for Hangseng too and quick profit taking for those hit-n-run traders may cause Hangseng to lose more points. The uncertainty in oil prices may also provide reason for investors to look for safety while they're in the money. Hangseng may find its resistance at 21000 and its support at 20400ish today.