Asian market preview 19/11/2008

US markets staged a late rally last night in another turbulent session as investors rushed back into the markets after the S&P500 market tested 2003 low. Investors, who have been sidelined for the past 4 out of 5 sessions, used the momentum to buy into stocks and joined in the rally. At least, one of the reasons of the rally was because fund managers had to find replacement for Anheuser-Busch Cos. as it will be officially removed at markets' close after it completed its takeover by Belgium's InBev SA. Another reason of the rally was because Hewlett-Packard reported better than expected earnings and provided a strong projection for Q4 and 2009. Overall markets sentiment is still negative as there are still many bad news regarding the bigger economy picture. The Labor Department reported that wholesale prices plunged the most in October and meanwhile, homebuilders' confidence sank to a new all-time low this month. Analysts believed that markets are still trying to find its real bottom and volatility will stay for quite a while as fears of a deepening recession grip the markets. Markets will need more strength from here for a period of time to develop a convincing story that the market has bottomed. The Dow ended up by 151.17 pts or 1.83% to 8,424.75, S&P500 rose by 8.37 pts or 0.98% to 859.12 while Nasdaq rose 8.37 pts or 0.98% to 1,483.27. Meanwhile, the congress and Bush administration are debating as to how to save the big 3 automakers. Congress proposed to use part of the $700 billion bailout money but Bush's administration said that there are other ways to save the automakers.

Asian markets may open higher today after plunging yesterday and may stay above the positive territory today as bargain hunters kick in. As analysts have said so many times, markets everywhere will be testing and retesting October lows and try to find the bottom before the markets find strength to stage a strong rebound. Crude oil fell yet again as investors see easing demands in the coming quarters. Oil was recently traded around $54.40ish per barrel, gold traded around $737.60ish and JPY traded around 96.90ish. Nikkei futures was closed at 8450 in CME compared to the close of 8285 here yesterday. Nikkei may trade between 8100ish and 8600ish today.

Kospi may open higher today following a late recovery in US markets and some bargain hunters may try to get into the market after Kospi lost almost 4% yesterday. The overall global economy may still weigh on the market but investors' confidence may be built little by little as share prices look so very attractive at current levels. Chip makers may lead the way after positive guidance from HP over in the US last night. Lower oil prices may also make investors to think that with inflation threat is diminishing, the government have more room to jolt the economy back into life. Kospi may find its support at 132ish and its resistance at 139ish today.

Hangseng may open higher after plunging almost 5% yesterday following a US markets' rebound and support from regional markets. Bargain hunters may come in and buy stocks at current levels. However, China mainland markets may also play a part to determine whether Hangseng will stage a strong rebound or it will go back down again today. Hangseng may find its support at 12400ish and its resistance at 13300ish today.