Asian market preview 22/07/2008

US markets ended the session down modestly after crude oil rebounded more then $2 to settle at $131.04 per barrel. The rise in oil offset the initial market enthusiasm after Bank of America reported better-than-expected results which raised hopes that the credit crisis is easing. With Bank of America's results, 4 of 5 biggest banks in the US have reported better-than-expected earnings which might show that the financial sector is recovering from the credit crisis. However, with oil back to trade above $130 per barrel, market is still nervous and investors are also uneasy with the rest of the earnings season. Oil went back above $130 per barrel after fears that the tension in Middle East might escalate and also fears that Hurricane Dolly might disrupt supplies at gulf of Mexico. The Dow ended the session down by 29.23 pts or 0.25% to 11,467.34, S&P500 slipped 0.68 pts or 0.05% to 1,260.00 while Nasdaq fell 3.25 pts or 0.14% to 2,279.53. After hours, American Express reported earnings that missed analysts' estimates and also Apple provided a weaker Q4 forecast which send Dow futures tumbling down more than 100 pts.

Asian markets today may open slightly lower on some negative impact from the rising oil again and also with some negative news after hours on Wall St. However, losses may be limited and stocks may still prove quite attractive with major banks reporting good earnings over in the US which showed that the credit crisis maybe nearing the end. Oil was recently traded around $130.50ish per barrel, gold traded around $967.50ish and JPY traded around 106.40ish. Nikkei futures closed at CME at 13140 yesterday compared to the close of 13005 here on Friday. Nikkei was closed for holiday yesterday and may try to play catch up today with the rest of Asian markets.

Kospi opened lower today at around 200.75 this morning. It then went down further towards 200.35 before it started its climb towards 202 level. It reached its highest at around 8 AM at 202.15 and it went back down towards 201ish at around 8.15 AM. Kospi's session maybe volatile for the rest of the day with tech sector may weigh after Apple released weaker guidance ahead. Although banks have reported better-than-expected earnings in the US, American Express results which missed estimates may weigh today.

Hangseng may open slightly lower today after rising so much yesterday and may ignite some profit taking in the session. However, with strong sentiment across the region and also stock prices which can still be considered as in good valuation at this level may still spark some buying interests for investors. Hangseng may find support at 22400 and resistance at 22800 today. China mainland markets may play a big part too today in determining whether the rally will continue or will profit taking prevail today.

Asian market preview 21/07/2008

US markets ended a fabulous week mixed on Friday after disappointing results from tech giants brought investors back down to earth. Less-than-estimated loss from Citigroup Inc. pleased investors and joined Wells Fargo & Co. and JPMorgan Chase & Co. in delivering stronger results than anticipated. However, tech giants like Google, Microsoft and AMD all reported less-than expected results and that caused selloff for those companies. More earnings from banks are expected this week and that will make investors stay on edge to brace for more bad results or if this situation is turning into a positive one. Many analysts believe that the US are still far from turning around the bear market into a bull market in current conditions. The Dow rose 49.91 pts or 0.44% to 11,496.57, S&P500 rose 0.36 pts or 0.03% to 1,260.68 while Nasdaq fell 29.52 pts or 1.28% to 2,282.78.

Asian markets may have a positive start to the week today following more upbeat earnings from the US banks and that may ignite another round of buying into stocks around the region. The lower oil price where it managed to stay below $130 per barrel may also cheer investors and may help boost the stock markets further today. However, with tech giants such as Google and Microsoft reported weak earnings, that sector may drag Asian tech counterpart too. Oil was recently traded around $129.97ish, gold trade around $964.50ish and JPY traded around 106.95ish. Nikkei futures was closed at 13145 in CME compared to the close of 13005 here on Friday. Nikkei will be closed for public holiday today.

Kospi may start the day higher today following better earnings from banks in the US and lower oil prices. Tech sector may drag the market down though but the overall sentiment today may stay positive. Kospi may test the 200 mark again today but with more bank and other corporate giants earnings from the US, many investors may still choose to stay on the sidelines today. Kospi may find its resistance at 198 and 200 while its support at 194 today.

Hangseng may start the day on the positive today following the gains on Wall St and also the strength from regional markets. Lower oil prices may boost bargain hunters to hunt for stocks in current prices and more positive results from Chinese banks may boost market sentiment today. However, many investors may still be waiting on the sidelines today in anticipation of more earninngs to come out of the US this week. Hangseng may test the 22000 mark today and may well be close above that level today. It may open around 22200ish today and may find its resistance at 22400 and its support at 21800 today. Hangseng may still turn to China mainland markets for more cue and directions as to where the market want to go today.

Asian market preview 18/07/2008

US markets surged for 2nd day last night as investors received double dose of good news in form of falling energy prices and good earnings report from big companies like JPMorgan Chase and United Technologies. Oil prices dropped for 3rd day in a row and was settled at $129.29, bringing the 3 day decline of more than $15 per barrel. JPMorgan Chase reported a better-than-expected earnings, although still reporting a loss in Q2 but it was better than what analysts' expected. The upbeat earnings report, the drop in oil helped the market to stage another rally and the battered financial sector was leading the way yet again. On other news, commerce dept reported construction of home and apartments rose 9.1% in June but construction for single-family home fell by 5.3% to the slowest pace in 17 years. Labor Department reported that the number of new people seeking unemployment benefits rose by 18,000 last week to 366,000 but the number was well below analysts' expectations. The Dow ended the day higher by 207.38 pts or 1.85% to 11,446.66, S&P500 rose 14.96 pts or 1.2% to 1,260.32 while Nasdaq rose 27.45 pts or 1.2% to 2,312.30. However, it seemed that the 2-day big rally maybe short-lived as Google, Merril Lynch and Microsoft reported earnings that missed analysts' forecast after hours.

Asian markets may open higher again today as oil prices tumbled for 3rd consecutive day, easing inflationary concerns. The surge in US markets may also help markets sentiment around the region today as investors may continue to collect stocks at bargain prices. However, gains around the region may be limited as fears are still there in the US' economic stability and corporate giants like Merril have started to miss earnings estimate. Oil was recently traded around $129ish per barrel, gold traded around $959ish and JPY traded around 106.20ish. Nikkei futures was closed at 13185 in CME last night compared to the close of 13015 here yesterday.

Kospi may start the day higher again today and may test the 200 mark after upbeat earnings lifted US markets overnight. With oil prices tumbled to below $130 per barrel, investors may be in buying mood again and may start collecting stocks again. However, with earnings season just started, investors may still remain cautious especially after Merril, Google and Microsoft reported earnings that missed estimates in after hours trading in the US. If Kospi is able to go beyond 200, it may test the 202ish region and may find its support at 195 today.

Hangseng may start the day higher again today after unexpected good earnings lifted the US markets yet again last night. The drop in oil prices may also helped investors' mood today. However, after-hours result which reported that Merril, Google and Microsoft missed estimates may weigh on the market today. China mainland market may also play a part after they reported slower growth but inflationary pressure is stil high. Hangseng may find its resistance at 22200 today and may find its support at around 21500 today.

Asian market preview 17/07/2008

US markets soared last night posting the biggest one day gain in more than 3 months. Investors are getting into panic mode in buying stocks after Wells Fargo & Co. reported better-than-expected earnings which send the stock up by more than 30%. The upbeat earnings report helped financial sector rallied last night as investors bought into the battered sector which have posted a record decline in the past 5 days. The rally was also boosted by the drop in oil prices, which have brought the oil down more than $10 in the past 2 days. Concerns about slowing economy has brought concerns that the demand for oil maybe diminished until next year. This was shown in the data that reported the US have ample oil supplies. The only negative news came from the Labor Department which reported that consumer prices shot up in June at the second fastest pace in 26 years which should remind investors that inflation still poses a threat to economic growth. The Dow shot up 276.74 pts or 2.52% to 11239.28, S&P500 rose 30.45 pts or 2.51% to 1245.36 while Nasdaq rose 69.14 pts or 3.12% to 2284.85.

Asian markets may start the day higher today following the rally in Wall St and the significant drop in oil prices to below $135 per barrel. Markets around the region may stage a significant rally today after being badly battered for the past few weeks. Financials sector may stage a rebound after the sector rallied the most in US last night. Exporters may also get some boost as Dollar gets stronger against major currencies. Bargain hunting may dominate the markets around the region today and may help to rally further. Oil was recently traded around $135ish per barrel, gold traded around $960.40ish and JPY traded around 105.19ish. Nikkei futures was closed at 13000 in CME overnight, compared to the close of 12575 here yesterday.

Kospi may open with a gap today following a very strong US markets last night and may rally further as the drop in oil prices may help the market. Bargain hunters may kick in today and start buying into cheap stocks. However, the rally may not be sustained as there are still some nervousness around as the financials heavyweight in the US are due to report their earnings later on tonight. Kospi may find its resistance at 205 today.

Hangseng may open gap today following a very strong US close last night. Hangseng may open at around 21700ish today and may test the 22000 mark if bargain hunting really is dominating the market today. With oil prices drop more than $10 in the last 2 days, Hangseng maybe boosted. However, with more earnings to be reported from the US and also China GDP number to come out later on today, Hangseng's gain may be dependant on China mainland markets too today.

Asian market preview 15/07/2008

US stocks ended down last night after surging almost 140 pts in early trade. The early rally came after The Fed released a news on Sunday that they're ready to help Fannie Mae and Freddie Mac if necessary. The news supposedly gave assurance for investors and bring some calm to the market. However, the positive bias in the market were erased as investors' worries regarding the health state of financial sector resurfaced. Various rumors and sell-off in regional banks pull stocks downward as investors are also worried with the upcoming Q2 earnings report which they predict that banks and financial institutions will have more sizable writedowns to report. In other news, Yahoo Inc. revealed that it had rejected Microsoft's latest attempt to acquire the online search engine in a joint proposal made by activist Carl Icahn. On the earnings front to report this week includes Intel Corp., Coca-Cola Corp., Microsoft Corp. and Citigroup Corp. Dow ended down by 45.35 pts or 0.41% to 11055.19, S&P500 fell 11.19 pts or 0.90% to 1228.30 while Nasdaq fell 26.21 pts or 1.17% to 2212.87.

Asian markets may start the day lower again today following a rollercoaster ride session yesterday. Markets around the region started the day lower only to rally up and finally ended down yesterday. The worrying financial sector in the US may prove to be hard to avoid in Asia today and selling pressure may continue today. With oil price go back up above $145 region, it may just add more reason for investors to selloff stocks today. However, if there's some positive news to come out of the region or even the US, markets may have another volatile session like yesterday. Oil was recently traded around $145.06ish per barrel, gold traded around $970.60ish and JPY traded around 106.25ish. Nikkei futures closed at 12970 in CME compared to the close of 13055 here yesterday.

Kospi may start the day lower again today after rebounding late last week and the selloff continue yesterday. If investors are becoming even more nervous with the situation, Kospi may go back down below 200 region and towards 197ish region today. However, if there's some piece of positive news, it may rebounded back up towards 202ish region today. Yesterday, Kospi was lifted after POSCO gave out a positive forecast for 2nd half of the year.

Hangseng may start the day lower today after touching a high of 22380 yesterday. Volatility is expected to be high again today as investors are becoming more worried regarding the health of financial sector in the US. A rally in China mainland markets yesterday have also failed to boost stocks in Hong Kong as investors are becoming more nervous in the upcoming earnings season from the US. Hangseng may find its support at 21700 and may find its resistance at 22100ish today. Hopefully, some good news will come out of the China mainland and may give Hangseng a boost.

Asian market preview 14/07/2008

US markets ended the week lower on Friday amid fresh concerns regarding financial sector especially Fannie Mae and Freddie Mac. The fate of the 2 institutions is being watched carefully as they hold guarantees for about $5 trillion worth of mortgages or about half the outstanding mortgages in the US. Stocks fluctuated with reports saying that the Fed could aid both institutions. The rally in oil also give reasons for investors to let go of their stocks on Friday after oil go back above $147 per barrel during the session. Volatility was high in the session as the Dow dropped more than 250 pts at one time, then it briefly touched the positive side before going back down again. In economic news, US trade deficit narrowed in May as exports, including industrial supplies and consumer goods climbed to all time high. Commerce Dept said growing exports drove trade gap down to $58.8 billion or 1.2% decrease from April. The Dow ended down by 128.48 pts or 1.14% to 11100.54, S&P500 fell 13.90 pts or 1.11% to 1239.49 while Nasdaq fell 18.77 pts or 0.83% to 2239.08.

Asian markets may open lower today following US markets' tumble on Friday caused by the growing concerns about credit market and the stability of US financial institutions. Exporters may be hit after US$ weakened against major currencies and stocks may go down further after oil hit fresh records of above $147 per barrel on Friday. However, the drop may be limited as investors may try to get bargain prices on stocks on optimism that the earnings for Asian companies are not going to be so bad. Oil was recently traded at $144.30ish per barrel, gold traded at $963.85ish and JPY traded around 106.40ish. Nikkei futures closed at 12950 in CME compared to the close of 12935 here on Friday.

Kospi may open lower today after staging a rebound on Friday. With oil go back above $140 per barrel, airlines may be hit again as concerns of high fuel will cut profit may hurt investors' confidence. Kospi may go back down towards 196ish but bargain hunters may limit the drop and drive Kospi back up again. Volatility is expected to be high too as mixed news came out of the US and investors may want to watch closely for this week's financials earnings to come out of the US.

Hangseng may open lower today at around 22000 and may go back below 22000 if investors decided that the rally on Friday is a bit premature. Ever growing concerns about the US credit market and also the state of financial institutions in the US may drive market lower. Exporters and oil refiners may push market down further on profit concerns. However, investors may want to see China's mainland markets too to see how they're performing and to see if Asian markets still have enough reason for a rally. Banks' earnings from China remains positive and the outlook of other sector seems to be doing okay which will give investors reason to buy. Hangseng may find its support at 21700 and its resistance at 22300 today.

Asian market preview 11/07/2008

US markets were managed to close in a positive territory last night after a volatile session. The multi-billion merger deal between Dow Chemical Co. and rival Rohm and Haas Co. provided reasons for investors to buy into shares last night and slightly ignore concerns about financial sector and energy costs. Shares of Freddie Mac and Fannie Mae fell further last night, 22% and 13.8% respectively on concerns that they may have to sell more new shares to compensate for losses from the housing slump. Comments by Treasury Secretary Henry Paulson saying that government can't be expected to bail out troubled financial companies sent most investment banks and insurance companies tumbling. The rebound in oil prices also capped the gains in the US markets as oil gained $5 after Iran tested another missile and more supply disruptions in Nigeria is feared. Labor Department reported that new application for unemployment fell 58,000 to 346,000 but continuing claims rose, indicating lingering weakness in the labor market. The Dow finished higher by 81.58 pts or 0.73% to 11229.02, S&P500 rose by 8.70 pts or 0.70% to 1253.39 while Nasdaq rose 22.96 pts or 1.03% to 2257.85.

Asian market may start the day higher today and may continue yesterday's rebound after US markets showed a little bit of buying power last night. However, with oil rose back above $141 per barrel, gains may be limited on inflationary concerns. Investors may not want to hold positions through the weekend in these times of uncertainties. Selling pressure may still be there after comments made by US' Treasury Secretary where they may have to allow financial companies to fail. Oil was recently traded around $141.90ish per barrel, gold traded around $945.75ish and JPY traded around 107.05ish. Nikkei futures was closed at 13130 in CME compared to the close of 13080 here yesterday.

Kospi may open higher today following Wall Street's slightly positive cues. BoK's decision to leave rate unchanged at 5% yesterday sparked a late recovery for Kospi and it may continue on today. However, with oil back above $141 level, gains may be limited and profit taking may take place in these volatile times. Investors may want to cash in ahead of the weekend and before GE's Q2 results to come out tonight in the US. Kospi may find its resistance at around 203 and its support at around 196.

Hangseng may open the day higher today after staging a rebound yesterday. Hangseng managed to stage a 500 pts rally in the first session yesterday but was cut in 2nd session after Chinese market ended the day lower. Today, Hangseng may open around 21900ish and may go back up above 22000. However, Chinese markets may prove to be another test for Hangseng and it may follow the direction of Chinese markets to go up or go back down. The rebound in oil prices may also limit today's gain in the Hangseng market. Hangseng may find its support at 21700 and its resistance at 22200ish.