Asian market preview 06/06/2008

US markets soared the most in more than a month last night after better-than-expected retail sales and a drop in unemployment. Investors seems to be ignoring negative signals on Thursday and were focused the economic recovery in the second half of the year. Investors are also ignoring a sharp spike in oil prices where it rose more than $5 per barrel overnight. Even a downgrade for Ambac and MBIA did not seem to bother investors a lot last night. The Dow soared 213.97 pts or 1.73% to 12604.45, S&P500 rose 26.85 pts or 1.95% to 1404.05 while Nasdaq rose 46.80 pts or 1.87% to 2549.94. Dollar declined the most against most major currencies like the euro and that caused oil to soar last night.

Asian markets may open higher today following the positive US markets close and the good economic data which came out of the US overnight. The spike in oil prices may push oil producers such as CNOOC higher today. However, markets may enter a profit taking session later on in the day today as today being a Friday and investors may want to lock in recent profits should the markets rise too much today. Oil was traded around $128.21ish per barrel, gold traded around $878.25ish and JPY traded around 105.90ish. Nikkei futures was closed at 14560 in CME compared to the close of 14410 here yesterday.

Kospi market is closed for holidays today and will resume trading on Monday.

Hangseng may open higher today and may continue the rebound from yesterday based on the positive US economic data and the soaring US markets overnight. The spike in oil prices may give CNOOC a boost but may put Sinopec and PetroChina under pressure. Investors may put more money in the market should they become more confident in the recovery in the US and global markets in the 2nd half of the year. However, markets may be volatile again today as investors may also want to get out of the market if the market rose too high as investors may want to stay out of the market ahead of the long weekend in Hong Kong. Hangseng may open around 24500ish and may go towards 24700ish and may find 24200 as its support today.