Asian market preview 24/10/2008

US markets ended a very volatile session last night mixed but showed some positive signs that bargain hunters are again trying to get back into the markets. The battle between bargain hunters and investors who are trying to cash out caused a very volatile environment for the markets. Analysts believed that investors are trying to find big names stocks and buy them up after being battered for the past 2 sessions. However, whenever the markets rally, nervous investors sold off their holdings as they are concerned about the state of the global economy and fear of a prolonged recession. The rally in the markets last night was led by energy companies as oil prices rose from its 16-month low as OPEC said that they would cut production amid falling demands. Tech stocks still got a beating as Amazon and Sandisk weigh on that sector. Meanwhile, labor department reported that new application for unemployment rose 15,000 last week to 478,000 slightly higher than the 470,000 predicted by analysts. Jobless claims above 400,000 signaled a recession and this is what investors are afraid of. Most of them are struggling to accept the reality that the US is indeed in recession and still believed that they can 'avoid' a recession. The Dow ended up by 172.04 pts or 2.02% to 8,691.25, S&P500 rose 11.33 pts or 1.26% to 908.11 while Nasdaq fell 11.84 pts or 0.73% to 1,603.91.

Asian markets may open slightly on the upside following a mild rally on Wall St overnight. Markets around the region may rebounded today but remain highly volatile as investors still struggling with the state of global economy. Slightly higher oil prices may give a boost to energy producers. Bargain hunters also may come in and seek cheap stocks after the markets only rose once in the past 5 sessions. Oil was recently traded around $69.17ish per barrel, gold traded around $724.90ish and JPY traded around 97.40ish. Nikkei futures was closed at 8300 in CME last night compared to the close of 8215 here yesterday.

Kospi may open slightly on the upside and may prompt some bargain hunters who may cause a rally early in the morning. However, with investors remain very nervous, any rally may be short-lived and may prompt investors to see that as an opportunity to cash out. The weakening Won again may weigh on the market and weak investors' confidence may cause Kospi to fall even further. Earnings results from Samsung Corp. may prove crucial to determine whether Kospi can have a rally today or will it fall further. Kospi may find its support at 135ish today and its resistance at 145ish. If Kospi managed to fall below 135ish, it may prompt more panic selling and may even go towards 130ish or lower.

Hangseng may open slightly higher following a positive end to Wall St's volatile session last night. Hangseng may have small rallies and market may remain highly volatile in the current situation. Bargain hunters may try to enter the market again and try their luck this time to see if they can really find bargain stocks at these prices. China mainland market may again play a part to determine if Hangseng can have a sustainable rally today. Hangseng may find its support at 13600ish and its resistance at 14300ish today.