Asian market preview 17/11/2008

US markets were closed sharply lower on Friday as investors cashed in after a big rally the day before and return their focus on the economy. Hedge fund selling ahead of a Saturday deadline contributed most of the markets' downturn. There were plenty discouraging news about the economy including comments from Fed chairman, Ben Bernanke saying that the markets remain under "severe strain" and a sobering report on October retail sales. Analysts believe that the markets are still searching for a bottom after last month's heavy sell-off and investors are just too nervous to invest for long term. Ben Bernanke also noted that he would work closely with other central banks and left the door open for a fresh round of interest rate cuts. This news did not cheer investors too much as they aren't sure how effective these rate cuts are going to be. The Commerce Department reported that October retail sales fell by 2.8%, surpassing its old lowest mark of 2.65% drop in November 2001 after the terrorist attacks. Now, investors are confirmed that the economic slowdown is going to last to next year and maybe more and that 2009 will be a very bad year for economic activity. The only concern is that investors are still unsure of how bad the slowdown is going to be next year. The Dow ended down by 337.93 pts or 3.82% to 8,497.31, S&P500 fell 38.00 pts or 4.17% to 873.29 while Nasdaq fell 79.85 pts or 5% to 1,516.85.

Asian markets may open lower and start the week weaker today following more downturn in the US on Friday. Bernanke's comments may weigh on investors sentiment today and concerns about the overall economic activity may cause investors to think twice before going in the market. Investors may also cashed out after staging a recovery rally on Friday for the regional markets. However, seeing at how things are going, investors may already realized that the global economy is going to slow further and if markets fell too much today, bargain hunting may kick in again. Oil prices also fell on Friday and was closed at $57.04 per barrel, gold was last traded at $742.50 and JPY last traded at 97.07. Nikkei futures was closed at 8460 at CME compared to the close of 8575 here on Friday.

Kospi may open lower today following US markets' tumble on Friday on fresh economic concerns. Investors may also be eyeing the PPI figure due to come out today to determine the general market direction. Markets may also be pressurized as there are no strong action at the weekend G-20 meeting that take place from Saturday in Washington. However, if markets fell too much, bargain hunters may kick in yet again as they see this as an opportunity. Kospi may find its support at 137ish and its resistance at 147ish today.

Hangseng may open lower today following the tumble in the US markets on Friday and also as there are no fresh new ideas of support from the G-20 meeting. Lower oil prices may eventually help the general markets but in the near term, investors are focusing on the global economic slowdown and that may cause investors to become nervous and may led to a selloff today for Hangseng. China mainland markets may play a part today to give support to prevent Hangseng from falling too deep. Hangseng may find its support at 12800ish and its resistance at 13800ish today.