Asian market preview 19/08/2008

US markets were closed lower yesterday as Fannie Mae and Freddie Mac fell to their lowest levels in nearly 20 years on concerns that government might need to bail out the mortgage financiers. More bad news also expected as Lehman Brothers Holdings Inc. is expected to report weaker-than-expected third quarter results. More bad news from financial sector is already anticipated by investors but the prolonged credit crisis have wiped out investors' confidence despite the fall in commodities prices. Meanwhile, National Association of Realtors reported that housing market remained flat at 16 in August and met analysts' expectation but this data could not lift up the sour mood in Wall St. Oil prices dropped slightly after rising to above $115 per barrel when news that Tropical storm Fay approached Florida, but appeared unlikely to disrupt installations in the Gulf of Mexico. Crude oil fell 90 cents to settle at $112.87 per barrel. The Dow finished lower by 180.51 pts or 1.55% to 11,479.39, S&P500 fell 19.60 pts or 1.51% to 1,278.60 while Nasdaq fell 35.54 pts or 1.45% to 2,416.98.

Asian markets may start the day lower today and may continue lower as credit crisis in the US persists and financials could feel more nervous about the whole situation. The decline in crude oil may help to boost sentiment a little bit but as crude declines, other commodity products also decline and that also may affect mining companies and may bring markets lower too. Crude oil was recently traded around $113ish per barrel, gold traded around $789.25ish and JPY traded around 109.75ish. Nikkei futures have already started and was recently at 12800 after opening at 12970 and reaching as low as 12780 earlier today.

Kospi have opened at 200.45 and have reached current peak at 200.60 and reached its current low at 196.35. Recently, Kospi was traded at 197.00. Kospi may trade within this range for the rest of the day, however, there's a chance that it might try to break low again before it rebounded towards 198ish.

Hangseng may open lower today at around 20700ish and may go further lower towards 20500ish today as more worries in the US and also if China markets keep on selling stocks. As I have said earlier last week, with olympic games still in session, market in China and Hong Kong have slowed considerably, and people are cutting their stocks investment. Hangseng may find its support at around 20400 and its resistance at 21000 today.

**For the next few days, I will be posting late as I have some internet connection problems at home. I'm sorry for the inconvenience.