Asian market preview 13/09/2008

US markets ended a very volatile day on Friday mixed With Nasdaq market ending mildly in positive territory. Dow Jones Industrial Average recorded the wildest swing ever with over 1000 points swing in the day. It started down almost 700 pts then rallied back up to gain more 100 pts before plunging back into negative territory. It spent most of the time down 300-500 pts before in the final hour, it rallied more than 700 pts and closed down 180 pts. Analysts believed that it was better than the previous 7 trading sessions and that investors are trying to bottom fish at current levels. Investors are taking chances ahead of the G-7 meeting to be held over the weekend to discuss the economic meltdown. Investors believed that one of the potential remedies is for governments to guarantee lending among banks. Within a week, The Dow have lost 18.2% and have lost 40.3% since hitting its highest peak a year ago. Analysts believe that trading will remain volatile in the next few weeks, but some brave long term investors are starting to enter the markets at current levels as nobody wants to miss markets' bottom. The Dow ended down by 128 pts or 1.49% to 8,451.49, S&P500 fell 10.70 pts or 1.18% to 899.22 while Nasdaq rose 4.39 pts or 0.27% to 1,649.51.

Asian markets may open mildly lower after losing so much percentage points on Friday. A mild 1%ish drop for US markets may means that markets around Asia may even starting to turn around and have a short-term rally. Depending on the outcome of the G-7 meeting, markets around Asia may even have quite a rally today. Oil prices also dropped on Friday to below $80 per barrel and marked the lowest price for a year. Lower oil prices means lower inflation for countries around Asia and that may give further boost to the stock markets. Oil was recently traded around $77.70ish per barrel, gold traded around $859ish and JPY traded around 100.50ish. Nikkei futures was closed at 8120 in CME compared to the close of 7870 here on Friday. Nikkei will be closed today for holidays.

Kospi may open rather flat today and may go up today following the modest drop in the US. The markets have been heavily oversold in the past week and bargain hunters may start to come in and starts buying stocks for long term. Many analysts have already pushed their investors by saying that it is the best time to enter into the stock market at any time since markets were coming down way too fast and governments around the world are working tirelessly to find a solution to the current situation. However, market may still be very volatile like Friday's session where Kospi was down 9% at one point before rebounding up to close lower by 4%. Kospi may find its support at 160ish today and its resistance at 167ish.

Hangseng may open rather flat with upward bias today following the mild drop in the US and after investors showed some kind of enthusiasm to buy stocks again. Many analysts believe that the bottom is near and a rebound is due to happen anytime soon. Long term investors may want to start early and may start buying stocks at current level. Lower oil prices may also help to boost markets in Hong Kong and China. Howecer, China mainland markets may also play a significant part to determine whether Hangseng will have a huge rally or will it be stopped halfway and go back down again. Hangseng may find its support at 14700ish and its resistance at 15700ish today.