Asian market preview 20/06/2008

US markets closed moderately higher last night after oil plunged almost $5 per barrel. The day was filled with mixed news, with Citigroup saying that a "substantial" amount of writedowns on bad debts are still to come and also after the Labor department reported less than expected declines in jobless claims. On the positive side, China will raise its fuel prices today and that might curb demand for fuel and sparked a selloff in the oil market. Regional bank BB&T Corp. said it expects to increase its dividend this year and the news also sent market higher. Tech sector got the biggest boost today after Broadcom Corp. expected higher earnings and caused techs to rally. Research In Motion also traded at its highest price at around $147ish per share. The Dow ended up by 34.03 pts or 0.28% to 12063.09 after plunging to its lowest level since March 17, S&P500 rose 5.02 pts or 0.38% to 1342.83 while Nasdaq jumped 32.36 pts or 1.33% to 2462.07.

Asian markets may open higher today following the drop in oil and a mild rebound in US equity markets. Tech sector also may get a boost today after a rally in the US last night. Exporters and Transportation may also be boosted on stronger dollar and lower oil prices. Oil was recently traded around $131.80ish, gold traded around $897.65ish and JPY traded around 108ish. Nikkei futures was closed at 14295 in CME compared to the close of 14120 here yesterday. The Nikkei 225 was closed at 14130.17 yesterday or down 2.23%.

Kospi may start the day higher today at around 225-226ish and may climb further on lower oil prices. Tech sector may also boost the overall market and exporters may also climb today. Investors may find new optimism on lower oil as consumer may want to spend more. However, gains may be limited as banks in the US are still quite nervous and predicting that there're more writedowns to come and also the Fed's comments saying that they need to fight inflation may cause some investors to think that The Fed may need to raise interest rates.

Hangseng may start the day higher today at around 23000-23100ish and may climb further if China markets also give a boost to the Hong Kong market. Lower oil may send refiners up but oil producers down today. If China markets can find some solid ground and get a nice rebound, Hangseng may be boosted further. However, today being a Friday, gains may seems to be limited as investors may find excuses not to enter market ahead of the weekend with worries that the Chinese governtment may do something over the weekend. Hangseng may find its resistance at around 23200ish and may find its support at 22700ish today.