Asian market preview 12/09/2008

US markets staged quite a big rally last night despite more Lehman worries still linger around the market. Bargain hunters bought financial's stronger players and also materials and transport sectors. The falling crude prices also helped investors to go into buying mode in Wall St. JPMorgan, Wells Fargo & Co. and Washington Mutual are the names that investors think their stocks are at bargain prices and investors were collecting their stocks. However, concerns regarding the broader economy still lingers as Labor Department reported that people seeking jobless benefit dropped 6,000 last week to 445,000 while analysts predicted a reading of 440,000. The Commerce Department also said that the nation's trade deficit jumped in July to the highest level in 16 months as oil imports set new highs which offset strong export growth, but since then, oil have fallen about 30% from its peak and investors are expecting better trade deficit in the coming months. Crude oil fell $1.71 to settle at $100.87 per barrel and helped investor to buy more stocks as optimism build slightly that inflation would tame. The Dow finished higher by 164.79 pts or 1.46% to 11,433.71, S&P500 rose 17.01 pts or 1.38% to 1,249.05 while Nasdaq rose 29.52 pts or 1.32% to 2,258.22.

Asian markets may open higher today following the stronger close on Wall St last night and as oil prices drop, hopefully investors will get slight optimism to buy into stocks. Talks that Bank of America might be helping and buy Lehman Brothers may also be taken as positive news by investors and may finally give reason to buy into financials as well. Commodity-related companies may continue be battered today as gold price slide to below $750. Oil was recently traded around $101.40ish per barrel, gold traded around $752.60ish and JPY traded around 106.95ish. Nikkei futures was closed at 12210 in CME compared to the close of 11985 here yesterday.

Kospi may open higher today following the stronger close on Wall St which may spark buying interest for investors locally. The gain in US$ may give boost for exporters but the falling commodity prices may also limit its gains today. Bargain hunters may kick in and start collecting stocks that have been battered quite badly for the past few days. Kospi has been showing some resilience as it didn't drop as much as other markets like Nikkei and Hangseng. Kospi may find its support at 188 and its resistance at 195ish today.

Hangseng may open higher today following the stronger close on Wall St and after the markets have been battered badly for the past 2 days. Bargain hunters may come in and buy cheap stocks but gains may be limited if investors are still worried about Chinese giants such as China Mobile. Commodity related companies may be hit again today. PetroChina and CNOOC may also get hit again as oil prices fell. However, lower oil prices may benefit the market in long term as inflation tame and central banks around the world can focus on economic recovery. Hangseng may find its support at 19200ish and its resistance at 20000 today.