Asian market preview 10/11/2008

US markets were closed higher on Friday as bargain hunters scooped up cheap stocks which are at multiyear lows. The highly anticipated October jobs report which was due out on Friday did little to shock investors as analysts from Goldman Sachs have predicted of up to 300,000 jobs was cut in October. The reports came in at 240,000 job cuts and was above the median forecast of 200,000 jobs lost. Trading volumes was moderate on Friday and price swings were not as bad as previous sessions. Oil stocks and defensive stocks led the rally on Friday as investors chose their stocks carefully. The Dow ended up by 248.02 pts or 2.85% to 8,943.81, S&P500 rose 26.11 pts or 2.89% to 930.99 while Nasdaq climbed 38.70 pts or 2.41% to 1,647.40. For the week, all markets lost about 4% and marked the worst presidential election week for the Dow since 1948.

Asian markets may open higher today and may stage another rally on optimism that all countries are doing everything they can to avoid further disaster in the global economic downturn. The $586 billion stimulus package unveiled by Chinese government over the weekend may give boost to regional markets. Investors are also trying to be part of the rally as they may find bargain stocks right about these price levels. Oil prices which stayed above the psychological $60 level may also provide support to oil producers. Oil was last traded at $61.04 per barrel, gold traded at $734.20 and JPY traded at 98.32. Nikkei futures was closed at 8850 in CME compared to the close of 8700 here on Friday.

Kospi may open higher today as US investors shrugged off bad jobs data and greed prevails over fear. Bargain hunters may lead the market higher today and the aggressive rate cuts performed by the BoK may show investors that the government is willing to do anything to save the economy. BoK cut its interest rates by 25 basis points to 4% and it signaled the 3rd rate cut in a month. Kospi may find its support at 147ish and its resistance at 157ish today.

Hangseng may open higher and may continue Friday's rally after US staged a rally on Friday despite bad economic data. The stimulus package unveiled by the mainland Chinese government may provide some boost to the market today and may given investors more reason to buy and join in the rally. Oil sensitive stocks may rise today as oil price is looking steady above $60 per barrel. Hangseng may find its support at 13800ish and its resistance at 15000ish today.