Asian market preview 23/09/2008

US markets tumbled yet again last night as fears returned to the markets as investors waiting nervously for the "mother of all bailout" package details. Oil and gold also soared as investors sought safe haven to invest other than the volatile stock markets. Investors may become more nervous if there isn't enough progress being made. Meanwhile, further reshaping of the US financial system appeared on Monday as Morgan Stanley plans to sell 20% of its stake to Mitsubishi UFJ Financial Group Inc. Oil soared more than $25 per barrel at one point and was settled up by $16.37 to $120.92 as investors snapped up supplies to cover October contract, which expired at the end of Monday session. Gold rose $40.30 to settle at $909 an ounce as dollar fell against major currencies. The Dow ended down by 372.75 pts or 3.27% to 11,015.69, S&P500 fell 47.99 pts or 3.82% to 1,207.09 while Nasdaq fell 94.92 pts or 4.17% to 2,178.98.

Asian markets may open lower today and end the 2-day winning streak since Friday as investors grew nervous on the bailout plan in the US. Oil's rally may also weigh on the market as inflation fears may creep back into some of the emerging markets. However, for countries like Indonesia, where the market is dominated by commodity players, this may give good sign for market to extend its rally. Oil was recently traded at $109.10ish per barrel, gold traded around $907.30ish and JPY traded around 105.45ish. Nikkei futures was closed at 11820 in CME compared to the close of 12060 here yesterday. Nikkei is closed for public holiday today.

Kospi may open lower today as fears crept back into the US markets last night. Investors are waiting anxiously for more news regarding the bailout plans and as oil crept back up, investors in Korea may also be weighed by rising energy prices. Kospi may find its support at 185ish and its resistance at 190ish today.

Hangseng may open lower after posting a huge 2-day gains since Friday. Weak sentiment from the US may weigh on the market and the global economic outlook is still uncertain. Chinese markets may play a part in determining the market's direction today. China mainland markets have rose more than 15% in the past 2 sessions and analysts predicted that it's bound to have a profit taking session soon if not today. Hangseng may find its support at 18700ish today and its resistance at 19300ish.