Asian market preview 14/11/2008

US markets soared last night with major markets rising more than 6% after investors feel that recent pullbacks have been too much and they do not want to miss the opportunity to get cheap stocks. Markets started the day lower after Labor Department reported that newly laid-off individual seeking unemployment benefits rose to its highest last week since Sept 11, 2001. Signs of worsening consumer spending was also shown as Wal-mart and Intel cut its full year earnings and sales forecast. However, when the markets managed to stay above Oct 10th intraday lows, investors took it as an opportunity and buy stocks so that they won't miss out on the rally. Investors are also partly hopeful about the G20 meeting to be held over the weekend in Washington. Analysts said that this situation is what they've been expected where markets retest its multiyear lows formed on Oct 10th and tried to build its base from there while its recovering gradually. Markets are predicted to see more volatilities for some time before it can find its upward trend. The Dow ended up by 552.59 pts or 6.67% to 8,835.25, S&P500 rose 58.99 pts or 6.92% to 911.29 while Nasdaq soared 97.49 pts or 6.50% to 1,596.70.

Asian markets may open higher today following the big rally posted on Wall St. Bargain hunters finally dominated the markets last night as greed overcame fear when markets are nearing its multiyear lows formed on Oct 10th. Regional markets may also follow the same pattern as investors may gauge that markets have priced in enough for the current set of bad news. As stocks rally, oil prices also rally and crude oil was recently traded around $58.20ish per barrel, gold traded around $705ish and JPY traded around 97.65ish. Nikkei futures was closed at 8830 in CME compared to the close of 8260 here yesterday.

Kospi may open higher and may follow same pattern as the US as bargain hunters seek cheap stocks. The fundamentals are still the same with global economy weakening but as stocks are fairly cheap at current levels, investors may want to buy the stocks and do not want to miss out on early rallies such as this. With oil managed to stay below $60 per barrel, recession fears also subsides and government worldwide may cut retail gas prices to curb inflation. Kospi may find its support at 147ish and its resistance at 155ish today.

Hangseng may open higher today and may follow the same pattern as the US markets and regional markets today. Market may be further boosted by oil related companies as oil rallied last night. China mainland markets may also play a significant part to determine whether Hangseng will join the huge rally or not. Yesterday, China's markets were one of the few regional markets that managed to stay positive. Measures from the Chinese government seems to still have positive impact for investors. Investors may also placing their bets that some positive outcome to come out of the G-20 meeting to be held over the weekend in Washington. Hangseng may find its support at 13600ish and its resistance at 14500ish today.