Asian market preview 10/06/2008

US markets ended the session mixed last night after a huge selloff on Friday. The drop in oil prices from record helped stocks to rally in Dow and S&P500. The improving sales in McDonald's also boosted stocks as it showed that consumers are still spending despite higher oil price. Financial sectors took another hit again though last night after Lehman Bros said that they're going to raise $6 billion after posting a large quarterly loss of $2.8 billion. The interest rate outlook pointed out by several Fed presidents also weigh on stocks as they said that high oil prices have caused inflation to be accelerating at a higher pace and that interest rate hike may be needed sooner rather than later. The Dow ended up by 70.51 pts or 0.58% to 12280.32, S&P500 rose 1.08 pts or 0.08% to 1361.76 while Nasdaq fell 15.10 pts or 0.61% to 2459.46.

Asian markets may open rather flat today but maybe with an upward bias as crude oil price fell more than $4 per barrel last night after Saudi Arabia's oil minister said that last week rally in oil was unjustified. The dollar strengthened against major currencies and that may also provide a boost to Asian markets with a lot of exporters. Oil was recently traded around $134.66ish per barrel, gold traded around $891.70ish and JPY traded around 106.30ish. Nikkei ftures was closed at 14220 in CME compared to the close of 14205 here yesterday.

Kospi may opened flat around 230-231ish today but may rebound from yesterday's losses on a slightly lower crude oil price. The strengthening dollar may also provide support for exporters in South Korea. Bargain hunters may start to kick in to hunt for cheap stocks but financials may still weigh as the US financial sector outlook remains grim.

Hangseng may open lower today as the market may want to play catch up with other markets around the region following yesterday's heavy losses in the region while Hangseng was closed for a holiday. A rise in oil price may weigh on Sinopec and PetroChina and the financial sectors may still also weigh the market down. China mainland markets may still be the major driving factor for Hangseng as it may turn to China to see how deep the market may drop or how strong it may rebound. Hangseng may find a strong support at around 24200 and 24000 and it may find its resistance at 24500 and 24700 today.

Asian market preview 09/06/2008

US markets fell sharply on Friday following a series of bad economic data. The labor department said that unemployment rose by 5.5% in May after an increase of 5% in April and was the biggest monthly increase since February 1996. The rise leaves unemployment at its highest level since October 2004 since analysts had predicted an uptick of only 5.1%. The worst news came from oil prices where it rose $10.75 to settle at $138.54 and kept increasing to close at $139.12 in after-hours trading on the Nymex. The gains in oil had erased a previously optimist economic outlook investors had been hoping for in the 2nd half of the year. The gains in oil also marked the biggest ever 1 day rally ever recorded on the Nymex for oil. The rally was caused by the tension build up in Middle East after Israel issued a warning that they might attack Iran if they do not abandon their nuclear program. Morgan Stanley's analyst's forecast of oil hitting $150 per barrel by July 4th also helped the rally in oil. Finally, the ever increasing demand led by China caused the oil prices to soar the its record close ever. The Dow was battered and was closed down by 394.64 or 3.13% to 12209.81, S&P500 plunged 43.37 pts or 3.09% to 1360.68 while Nasdaq fell 75.38 or 2.96% to 2474.56.

Asian market may open lower today on skepticism regarding the state of the US economy. The high unemployment rate and the surge in oil price while the Dollar weakened may cause high selling pressure in the market today. Investors who have gained some optimism regarding the state of the US and global economy and also the prospect of an economical recovery in the 2nd half of the year may think otherwise after the rally in oil which may send inflation fears to Asian countries. Exporters may be battered after US$ weakened against major currencies. Oil was settled at $139.12 on Friday, gold was traded around $901.25 and JPY traded around 104.90ish. Nikkei futures was closed at 14050 in CME compared to the close of 14470 here on Friday.

Kospi may open lower today following the sell-off in the US on Friday session. Kospi was closed for a holiday on Friday and investors may find themselves seeking shelter for the plunge in the stock markets. Trading may be rough with oil going towards $140 per barrel and investors confidence may be dented by the state of the US economy. Kospi may go below 230 level today if investors decided to sell most of their stocks on the worrying economic data. Little optimism is expected to come from the investors today and this may cause Kospi to fall more than 3% for the day. Stocks may be hit hard as South Korea is a major oil importer.

Hangseng is closed for a national holiday today.

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.

Asian market preview 05/06/2008

US markets ended mixed overnight as concerns about the financial sector eroded enthusiasm over a decline in oil prices and a report that signaled modest growth in the service economy. The Fed's chairman, Bernanke's comments on inflation in the US is being above the comfort zone also caused the markets to go down after it rises in the morning. ISM manufacturing index and ADP jobs report came better than expected and those data sent markets soaring higher in the morning. Oil prices declined more than $2 and was settled at $122.30 per barrel after supply came out more than expected in the US. Financial sector was hammered yet again last night after Moody's investor service warned it might downgrade the ratings on Ambac and MBIA. The Dow ended down by 12.37 or 0.1% to 12390.48, S&P500 fell 0.45 pts or 0.03% to 1377.20 while Nasdaq rose 22.66 pts or 0.91% to 2503.14. Tech sector rallied overnight as investors turned to tech sector as they believed that the sector is quite safe compared to the other sector in the market which can be affected by credit crisis.

Asian markets may open quite flat today with some upward bias boosted by the tech sector today. The decline in oil may also helped boost stocks like yesterday but more uncertainties in financials may make the markets around the region to be volatile. The strength in Dollar may boost exporters yet again. Stocks may go down too with investors may want to take out their money in these uncertain times. Oil was traded recently around $122.30ish per barrel, gold traded around $876.90ish and JPY traded around 105.24ish. Nikkei futures closed at 14340 in CME last night compared to the close of 14250 here yesterday.

Kospi may open a bit flat today at around 235ish and may have a rough volatile session today with more uncertainties in the US with inflation problem and more credit crisis concerns on the financials front. Lower crude oil may help markets today and the tech sector may boost the market higher along with exporters. Investors may not buy heavily into the stock markets ahead of the long weekend though and that may cause quite a high volatility rate.

Hangseng may open around 23900-24000ish today after being heavily sold towards the end of the session yesterday. The selloff in Chinese telecoms and CNOOC yesterday have caused the futures market to go below 24000 level. Market may see into China market yet again today to determine whether the market may get a nice rebound or more downside today. Chinese telecoms may still be in focus today and also oil producers. Oil refiners such as Sinopec and PetroChina may get a boost after oil price keep declining. Hangseng may find 23700 as its support today and 24200 as its resistance today.

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.

Asian market preview 03/06/2008

US markets tumbled overnight after economic reports still showed that the economy is still sluggish. ISM manufacturing index fell for 4th consecutive month in May as expected, while Commerce Department said construction spending fell in April for 6th times in the past 7 months due to a drop in home building. Stocks also fell after S&P downgraded financial institutions such as Merril Lynch, Morgan Stanley and Lehman Brothers and revised Bank of America JP Morgan's outlooks to negative. Financial sector was also battered after Wachovia sacked its CEO, Ken Thompson due to a prolonged credit crisis. S&P's reason for downgrading those institutions was because they said that these companies will be forced to make more writedowns in the coming months due to prolonged credit crisis. The Dow fell 134.50 pts or 1.06% to 12503.82, S&P500 fell 14.71 pts or 1.05% to 1385.67 while Nasdaq fell 31.13 pts or 1.23% to 2491.53.

Asian markets may open lower today following the drop in US markets overnight. The high oil prices may weigh on investors and also banking sectors may get quite a beating today after the outlook in the US financials seems to be quite grim. Exporters stocks may be battered as US$ fell against major Asian currencies. Oil was recently traded around $127.60ish per barrel, gold traded around $890.75ish and JPY traded around 104.50ish. Nikkei futures closed at 14210 in CME overnight compared to the close of 14400 here yesterday and 14270 here after hours yesterday.

Kospi may open lower today at around 233-234ish following the drop in US markets and new concerns regarding the health of the economy. Investors may take this opportunity to get some profit after recent gains. The high oil price may not be able to help much either. Exporters stocks may be battered too with the decline in US$. Markets may be volatile yet again as investors may believe that the Korean market is quite strong right now and therefore they may go into bargain hunting mode when market has dropped quite a lot. Strong support point may be found at 230.

Hangseng may open lower today at around 24300-24400ish with renewed concerns on the US economy health. Chinese markets may be in focus still as investors may want to see what kind of state the chinese economy is in. Analysts believe that China may showed some kind of slowdown after the Sichuan earthquake and that may help the market. Hangseng may find its strong support at 24000 and may find its resistance at 24600 today.

Asian market preview 02/06/2008

US markets ended a strong week with a mixed performance on Friday after government's report showed that Americans' spending rose in April to keep pace with rising costs. Commerce department reported that personal spending rose 0.2% and personal income rose 0.2%. Inflation at personal spending level excluding food and energy costs, rose by a small amount of 0.1% in April. These readings were in line with expectations and showed that high commodities costs have not yet caused sharp pullback in spending or lifting prices for other goods. More data to come out this week for investors to digest and use them to gauge the health of the economy. One of these is the employment report and manufacturing. Good data on these items may boost stocks further or a bad data may cause another sharp pullback. The Dow ended down by 7.90 pts or 0.06% to 12638.32 and rose 1.27% for the week. S&P500 rose 2.12 pts or 0.15% to 1400.38 and gained 1.78% for the week. Nasdaq rose 14.34 pts or 0.57% to 2522.66 and gained 3.19% for the week.

Asian markets may open flat after US markets ended the session pretty much flat on Friday with investors turned cautious. High oil prices may still weigh on the investors and more uncertainties regarding the US economy may provide a good time for some investors to reap quick profits after the markets rose quite a lot in the past 2 sessions. Oil was recently traded around $127.39 per barrel, gold traded around $886.20ish and JPY traded around 105.35ish. Nikkei futures was closed at 14380 in CME compared to the close of 14370 here on Friday.

Kospi may open the session flat with some downside bias today. It may go down first in the morning before continuing its rally if investors are still positive about the market. However, lack of fresh new momentum may drive the market lower today with investors lock in profits. Trading range maybe thin today with volatility may be high as profit taking may be up against bargain hunters.

Hangseng may open around 24500ish and may be trading within 24000-24500 today. Volatility may be high and lack of strong market news from the US may drive Hangseng lower today on profit taking. If Hangseng is able to break 24570, it may try to go towards 24700 but if it go down, 24000 may be a very strong support point. China mainland markets may yet again determine how strong or how weak the Hangseng market is going to be.