Asian market preview 24/09/2008

US markets fell again last night and set the steepest 2-day decline since 2002 after losing more than 3% a day earlier on concerns regarding the $700B bailout plans. The US congress were questioning whether the $700B bailout is necessary and if it is, whether that $700B of taxpayers' money will help steer the economy around. The market seemed uncertain about how long it will take for the bailout plans to take effect while Fed chairman, Bernanke, told the Senate Banking Committe Congress risks triggering a recession if it doesn't act on the plan. He said that inaction could leave a range of businesses unable to borrow money while consumers could find it impossible to finance big purchases like cars and homes as banks are reluctant to give credits. Analysts believe that volatility will remains for some time even after the bailout package passes because of global economic slowdown which is going to have some impact on earnings. The Dow fell 161.52 pts or 1.47% to 10,854.17, S&P500 fell 18.87 pts or 1.56% to 1,188.22 while Nasdaq fell 25.67 pts or 1.18% to 2,153.34.

Asian markets may open lower again today following more concerns regarding the US bailout plans for the financial system. Most Asian markets were lower yesterday on this bailout concerns and may extend their losses today. Oil prices meanwhile were lower on profit taking and as the Dollar regained some grounds last night. Oil was recently traded around $107.03ish per barrel, gold traded around $892ish and JPY traded around 105.71ish. Nikkei futures were closed at 11750 at CME compared to the close of 12045 on Monday. Nikkei may play catch up with the rest of the regional markets after it was closed yesterday for a public holiday.

Kospi may open lower today following more concerns regarding the $700B bailout plans and its effectiveness. Yesterday, Kospi started lower but ended the day higher as investors shrugged off concerns from the US and focussed on the local market. The news that Warren Buffett is buying Goldman Sachs may give some boost to regional markets. Kospi may find its support at 190ish today and its resistance at 197ish.

Hangseng may open lower again today following more uncertainties from the US. Hangseng was heavily sold yesterday, losing almost 4%. Selling was intensified in the afternoon session as investors feared that market will be closed today due to another typhoon incoming. China mainland markets may again play a part in determining how the Hangseng market will be performing today if the market is open. Hangseng may find its support at 18700ish today and its resistance at 19500ish.