Asian market preview 16/10/2008

US markets plunged again last night amid new recession concerns and that the measures taken by governments will not heal the wounded economy straight away. All markets were down more than 7% as new data points to recession if not already here, is inevitable. The sell-off began after the governments reported that retail sales plunged by 1.2%, almost double the 0.7% predicted by analysts which made it clear that consumers are reluctant to spend amid a shaky economy. Then in the afternoon came the beige book which also offered similar views regarding the economy. The report found that the economy continued to slow as financial and credit market problems became worse. Analysts predicted that volatility will remain high in these uncertain times and as the governments have used almost all measures to help the economy, investors now have to wait to see how the actions will steady the economy. The Dow plunged 733.08 pts or 7.87% to 8,577.91, S&P500 fell 90.17 pts or 9.03% to 907.84 while Nasdaq fell 150.68 pts or 8.47% to 1,628.33.

Asian markets will open lower again today following the plunge in US markets last night as investors fear of recession. Markets around the region may be hit hard again and may visit this year's low, which was formed on 10th October again today as the fear of a prolonged global recession may make investors to hold cash instead of stocks right now. Crude oil prices also plunged overnight as fears of reduced demands make investors flee. Oil was recently traded around $73.50ish per barrel, gold traded around $845ish and JPY traded around 99.60ish. Nikkei futures was closed at 8500 in CME compared to the close of 9320 here yesterday.

Kospi may open lower again today as US markets plunged overnight and may continue its losses and may even visit this year's low again. Investors' confidence have been hit pretty hard the past month and with this growing fear of global recession, investors may run away to safety instead of holding stocks. Local corporate earnings may help or may even make things worse if earnings are bad. Kospi may find its support at 160ish and if it breached that level, it may find resistance at 155ish. It may find its resistance at 165ish today.

Hangseng may open lower today amid growing concerns of a global recession. Hangseng have plunged 5% yesterday and may extend its decline today as regional markets may put pressure on its movement. The Hong Kong government will take every measures to prevent Hong Kong to become affected by the crisis, but it cannot avoid global recession. Hangseng may find its support at 14500ish and its resistance at 15200ish today.