Asian market preview 04/06/2008

US markets retreated for 2nd day last night after more worries in the financial sector sent stocks plunging in the afternoon. Analysts believed that Lehman Bros may need to raise $4 billion. Wachovia also led the drop as analysts believe that the company may report a much higher credit loss. Markets opened on a positive note after government said that demand for manufactured goods unexpectedly grew 1.1% in April. Markets also rose after Fed Chairman, Bernanke stated that economy will grow without boosting inflation. He said that interest rates are 'well-positioned' to promote growth and stable prices. This speech sent the dollar soaring and oil price to plunge to below $125 per barrel. The Dow fell 100.97 pts or 0.81% to 12402.85, S&P500 fell 8.02 pts or 0.58% to 1377.65 while Nasdaq fell 11.05 pts or 0.44% to 2480.48.

Asian markets may open lower today following another drop in the US equities markets overnight on more concerns regarding financial sector. However, with Dollar gained strength against most major currencies, the impact of the drop may be limited and markets may gain grounds after steep declines yesterday. The falling oil prices may also boost markets but may drag oil producers down. Oil was recently traded around $124.30ish per barrel, gold traded around $881.25ish and JPY around 105.15ish. Nikkei futures was closed at 14210 in CME compared to the close of 14190 here yesterday.

Kospi may open lower today after US markets dropped for 2nd day. However, exporters may limit the drop on the strong dollar and also most companies may be boosted by the drop in oil prices. Investors may also buy into stocks after a sharp declines yesterday. Financials and banks may still drag on the market though.

Hangseng may start the day lower again today and may find 24000 as its support point. Oil producers such as CNOOC may drag the market down after oil dropped more than $3 overnight. Banks may also drag market down after more uncertainties in the US. However, exporters may help limit the losses and oil refiners such as Sinopec and Petrochina may boost the market today. It may find its resistance at 24300 today for Hangseng. China markets may also be driving the market and it will determine how the market will rebound from yesterday's losses or whether it will plunge further.