Asian market preview 22/10/2008

US markets ended down last night on mixed earnings concern and investors took the opportunity to have some profit taking after a huge 400 pts rally the day before. Weak earnings report from Texas Instrument, Sun Microsystems, Freeport McMoran again caused investors to see gloomy outlook beyond Q4 and that sparked another sell-off in the US markets. However, analysts said that investors anxiety have lessened considerably compared with the past 2 weeks when fears took over the markets and battered stocks across the globe. Credit markets eased further in response to a sweeping series of bailout measures by world government, including a joint US and European plan to buy stakes in private banks to boost their lending. Right now, investors are watching the earnings front to gauge how bad the economy outlook is going to be while they're waiting for the bailout measures to work its way through the system. Until the credit market health turn to normal, markets will have these back and forth swings as analysts predicted. Among blue chips, DuPont Co. and Caterpillar both fell more than 5% on weaker earnings report and gloomy 2009 outlook. The Dow ended down by 231.77 pts or 2.50% to 9,033.66, S&P500 fell 30.35 pts or 3.08% to 955.05 while Nasdaq fell 73.35 pts or 4.14% to 1,696.68.

Asian markets may open lower today following another loss on Wall St last night. However, this time the losses on Wall St is not that significant compared to the past few weeks. Investors are more concerned about the earnings report and investors around Asia may also turn to its own local earnings report to find momentum for their markets. Governments worldwide have done whatever they can to help the credit system and investors have realized that it would take time for those measures to work. Crude oil prices fell overnight and was recently traded around $71.75ish per barrel, gold traded around $775.80ish and Nikkei futures was closed at 8980 in CME compared to the close of 9115 here yesterday.

Kospi may open lower today and may continue its downward path from yesterday if more gloomy earnings are to come out in South Korea. The weakening of Korean Won may again weigh on the stock market today. Investors may turn to local news and local earnings report to determine how far the market will continue its way downward or will it make another round of comeback today. Kospi may find its support at 150ish and its resistance at 155ish today.

Hangseng may open lower today following another round of selling in the US last night. Hangseng market may turn to China mainland markets for more news to determine market direction today. Government's plan to inject China's Agriculturual bank, more tax rebates for toymakers and textile exporters and also PetroChina's plan to expand may limit Hangseng's losses and may turn it to the upside. Hangseng may find its support at 14700ish and its resistance at 15300ish today.