Asian market preview 13/11/2008

US markets tumbled yet again last night, with major markets falling more than 4% as investors got disheartened after the government said that they won't purchase troubled assets from banks. This decision however, bring different views as some analysts believe that it is the right thing to do for the government not buying troubled mortgage-assets from banks as it would take a very long time while some other analysts concerned that the bailout funds depleted way too fast. Investors got more nervous as more companies showed signs of being hurt by the pullback in consumer spending. Macy's Inc. said that it lost $44 million in third quarter as sales fell more than 7%. Meanwhile, consumer electronics retailer Best Buy Co. slashed its fiscal 2009 guidance on fears that consumer spending will slow further. These news came on top of disappointing news from Starbucks Corp. and homebuilder Toll Brothers Inc. the day before. Analysts believed that the markets are in a typical process of testing and retesting its intraday low hit on Oct 10 and investors do not want to hold stocks overnight in times like this. The Dow finished down by 411.30 pts or 4.73% to 8,282.66, S&P500 fell 46.65 pts or 5.19% to 852.30 while Nasdaq fell 81.69 pts or 5.17% to 1,499.21.

Asian markets may open lower yet again today following another sharp drop in US markets last night. Investors confidence is being eroded bit by bit in this situation and it may made them lose faith to buy stocks in the regional markets. Oil sensitive stocks may fall again today as crude oil fell below $57 per barrel on fear that global economic growth will slow more than initially feared next year. Crude oil was recently traded around $55.90ish per barrel, gold traded around $711.40ish and JPY traded around 94.80ish. Nikkei futures was closed at 8180 in CME compared to the close of 8610 here yesterday.

Kospi may open lower today following more bad news about slowing consumer spending in US and after the US government reiterated new plans to rescue the financial system. The weakening Won may not help investors too as foreigners dump more stocks in the country. However, if the market fall too much, there may be some bargain hunters who would come in and buy stocks for long term as current stock prices are at a very cheap levels. Kospi may find its support at 140ish and its resistance at 150ish today.

Hangseng may open lower again today following more bad news from the US and on concerns that consumer will spend less around the world. However, strong China's retail figures may help stocks today as it showed that global slowdown do not affect Chinese local markets too much. China's retail sales rose 22% in October, close to its fastest pace in nine years. Bargain hunters may emerge if the market fall too much today. Hangseng may find its support at 12800ish and its resistance at 13900ish today.