Asian market preview 12/08/2008

US markets extended Friday's rally last night on lower oil prices but gains were limited by more credit worries around the country. Oil touched its lowest point since May at $112.72 per barrel and it caused stocks to shot up higher again and made the Dow to rise more than 130 points. However, comments from The Fed which said that about 75% of the banks it surveyed in July had increased requirements for prime mortgages, up from about 60% in April. Tighter lending standards means that it is more difficult to lend money that could stimulate the economy. In recent trading sessions, lower oil prices and the year-long credit crisis are competing for Wall St's attention, with oil pullbacks send stocks higher and credit-related news limited those gains. The Dow ended higher by 48.03 pts or 0.41% to 11,782.35, S&P500 rose 9.00 pts or 0.69% to 1,305.32 while Nasdaq rose 25.85 pts or 1.07% to 2,439.95.

Asian markets may open higher again today following the strong Wall St close last night and also the further declines in oil prices. However, China mainland markets may play a part in determining how strong the gains in those markets will be or will the markets loses steam again like yesterday. Oil was recently traded around $114.50ish per barrel, gold traded around $826.25ish and JPY traded around 110.05ish. Nikkei futures was closed at 13420 in CME compared to the close of 13365 here yesterday.

Kospi may open higher again today and may extend yesterday's rally with lower oil prices may fuel the buying power for investors. US markets were also driven by lower oil prices but the persistent credit crisis still lingers and haunt the markets. Kospi may find its support at 201 and its resistance at 206 today.

Hangseng may open higher and may be able to sustain its gains today if China markets are staging a rebound as Hangseng lost its steam late yesterday. Hangseng may open at around 21900ish and may go towards 22400 today if more investors are becoming optimists that lower oil prices may bring inflation down around the region. Hangseng may find its support at 21800ish and its resistance at 22400ish today.

Asian market preview 11/08/2008

US markets were closed sharply higher on Friday to end the highly volatile week on a high note. Another sharp drop in oil prices as dollar gained grounds against Euro sparked a buying frenzy by investors and set aside more financial worries generated by the 3x larger-than-expected loss at Fannie Mae. Oil prices dropped $4.82 per barrel to settle at $115.20 which brought crude's decline over the past 4 weeks to more than $30 per barrel. Investors saw good sign along with the drop in oil prices as cheaper oil means consumer can spend more freely. In a disturbing financial news, Fannie Mae reported a loss of $2.3 billion or $2.54 a share compared to the predicted 68 cents a share. The company also said it would cut its dividend to 5 cents from 35 cents. In this kind of market condition, investors would buy anything with positive news and sell anything when negative news came along. The Dow ended up by 302.89 pts or 2.65% to 11,734.32 and rose 3.6% for the week. S&P500 rose 30.25 pts or 2.39% to 1,296.32 and rose 2.9% for the week. Nasdaq climbed 58.37 pts or 2.48% to 2,414.10 and jumped 4.5% for the week.

Asian markets may open higher today following the strong close on Wall St on Friday. Investors around the region may finally find more optimism and reasons to buy into stocks with oil prices keep dropping to $115 level per barrel. Inflationary pressure also drops along with oil prices. However, more financial worries from the US may still weigh on the markets. Oil was recently traded at $115.95 per barrel, gold traded around $860.35 and JPY traded around $110ish. Nikkei futures was closed at 13300 in CME on Friday compared to the close of 13170 here on Friday.

Kospi may open higher today following the huge gains on Wall St on Friday. Investors may start to buy into stocks again as oil prices declined to $115ish per barrel. Kospi may go towards 205ish today if investors are confident enough and may even go higher. However, if nervousness regarding US financial sector still outweigh even the sharp drop in oil, the market may pull back again. Market may have a volatile session with optimists still fight against the skeptics.

Hangseng may open higher today at around 21900-22000ish today and may go even higher as investors gains more confidence with the sharp drop in commodities prices. However, China markets may play another big part here again as it did on Friday where China markets plunged almost 5%. Hangseng may have a volatile session today with bargain hunters may come in and buy cheap stocks. Hangseng may find its support at 21800 and its resistance at 22300ish today.

Asian market preview 08/08/2008

US markets were closed lower overnight in another triple digit session on concerns about further troubles in the financial sector, higher unemployment and lackluster retail sales. On top of the list of worries, American International Group Inc.(AIG), reported a loss of more than $5 billion for Q2 the stock fell $5.25 or 18%, the most since it went public in 1969. Labor Department also reported that the number of newly laid off people seeking jobless benefits last week jumped 7,000 to 455,000 last week, its highest level in more than six years. Weak sales report from Wal-Mart Inc and other retailers also added to investors' unease. Another disturbing news came from Moody's when it put American Express Co. on review for a possible downgrade in ratings. Oil prices which have been on downside trend, rose last night to settle at $120.02 per barrel, adding to Wall St's selling mood. A positive light came from National Association of Realtors when it reported its seasonally adjusted index of pending sales of existing homes rose 5.3% in June from prior month, rather than declining as expected by analysts. The Dow ended down by 224.64 pts or 1.93% to 11,431.43, S&P500 fell 23.12 pts or 1.79% to 1,266.07 while Nasdaq fell 22.64 or 0.95% to 2,355.73.

Asian markets may open lower today following more worries about the US' financials sector. The rise in oil prices also may add worries to the regional markets. Finally, being a Friday today, markets may be in profit-taking mood and it may cause further downfall in the markets around Asia. Oil was recently traded around $120.10ish per barrel, gold traded around $873.40ish and JPY traded around 109.40ish. Nikkei futures closed at 13095 in CME last night compared to the close of 13175 here yesterday.

Kospi may open lower today and may go well below 200 mark again. More downside risk is there if Kospi closed below 200 today. With more financial sector worries came out of the US and the seemingly endless economic problems may add to the selling factor for Kospi. Investors may also be in selling mood with oil price started to climb back up. Kospi may find support at 197 and resistance at 201ish today. However, with selling have already started yesterday, Kospi may not lose too much today.

Hangseng may open lower today following US markets' tumble on fresh economic and financials concerns. The rising oil price also may add to investors' worries today. China mainland markets may also play a part in determining how Hangseng will fare today. The Beijing olympics will kick-off tonight and that may bring some positive light to the region. Hangseng may open around 21900ish and may find its support at around 21700ish and its resistance around 22200 today.

Asian market preview 07/08/2008

US markets were closed stronger overnight after posting big gains the day before. The continuing drop in oil prices gave investors more confidence that recession can be avoided and economic recovery is on course. Earlier in the session, investors have become nervous once again after Freddie Mac reported larger-than-expected Q2 loss but investors gained more confidence after government reported a jump in domestic oil inventories which caused oil price to slide 59 cents to settle at $118.58 per barrel. Oil price have almost fell $30 per barrel since reaching its peak of $147.27 on July 11. The better-than-expected earnings for Cisco Systems also helped markets to get more investors' confidence to buy into tech stocks while financials remained a weak spot. The Dow ended up by 40.30 pts or 0.35% to 11,656.07, S&P500 rose 4.31 pts or 0.34% to 1,289.19 while Nasdaq rose 28.54 pts or 1.21% to 2,378.37.

Asian markets may open higher today and may extend yesterday's rally after oil prices slid further last night, easing inflationary concerns around the region. Many analysts said that oil prices decline at just the right time which may help to boost global markets and prevent the markets to go deeper into recession. The strength in dollar also may boost exporters today. Tech stocks which were boosted in the US markets, may also be boosted around the region especially in Japan and South Korea. Oil was recently traded around $118.50ish per barrel, gold traded around $879.40ish and JPY traded around 109.60ish. Nikkei futures was closed at 13290 in CME compared to the close of 13210 here yesterday.

Kospi may open higher today at around 205ish today and may extend its gains from yesterday should investors have become more confident to invest in stocks with the rapid decline in oil. However, with financial sector still worrisome in the US, investors might still have some doubts if this rally could actually last. In the short term, markets may become optimistic and investors may have enough confidence to buy into stocks.

Hangseng may open higher today and may play catch up with the rest of the region after the market was closed yesterday as the country was in danger with tropical storm approaching. Hangseng may open around 22300ish and may rise further towards 22700. If investors are optimistic enough, it may even try to get to 23000 mark as other region have posted big gains yesterday. China mainland market may play a part too in boosting Hangseng today. With olympic games approaching in 2 days time, China may be boosted further and with oil prices keep declining, investors may get more confidence to buy into stock markets.

Asian market preview 06/08/2008

US markets were closed sharply higher last night as investors enjoyed reports that services sector activity fell less than expected last month, another drop in oil which took crude price to as low as $118 per barrel and finally, The Fed keeeping rates steady at 2% completes the huge rally. Early in the trading session, shares rose higher after Institute for Supply Management said its services sector index rose to 49.5 from 48.2 in June, higher than analysts expected at 49.0. Although any reading below 50 signals a contraction, but that reading brings some optimism to investors that the economy is recovering gradually. Oil also play a big part in yesterday's rally as it dropped to as low as $118 per barrel before it finally settled at $119.17 per barrel which brought the drop to $28 since its peak of $147.27 reached on July 11. The rally was then extended after The Fed announced to keep its rate steady at 2% as expected. Its accompanying statement is a little bit darker, stating that "inflation has been high, spurred by the earlier increases in the prices of energy and some other commodities." But it also said it expected inflation to moderate later in the year. On the earnings front, Cisco Systems reported a 4.4% increase in net income, beating expectations. P&G said its fiscal Q4 profit jumped 33% while D.R. Horton Inc. reported narrower fiscal Q3 loss. The Dow soared 331.62 pts or 2.94% to 11,615.77, S&P500 shot 35.87 pts or 2.87% to 1,284.88 while Nasdaq rose 64.27 or 2.81% to 2,349.83.

Asian markets are expected to open higher today following the strong US markets close and after The Fed kept interest rate steady at 2%. The 2-day decline around the region may also prompted some bargain hunters to hunt for cheap stocks as oil drops to below $120 per barrel. Finally, investors can have some confidence buying stocks with recent news and the decline in commodities prices. US$ gained strength against major currencies which will also boost exporters around the region. Oil was recently traded around $119.20ish per barrel, gold traded around $873.10ish while JPY traded around 108.28ish. Nikkei futures was closed at 13170 in CME compared to the close of 12975 here yesterday.

Kospi may open higher at around 202 today following US markets strong close and the plunge in oil prices overnight. Investors may be boosted with weaker oil prices which will indicate that inflation may be going down later on in the year. With The Fed keeping rate steady at 2%, investors are expecting that The Fed are waiting patiently for economy to recover and this may bring positive sentiment to investors. Kospi may find support at 200 and resistance at around 205 today.

Hangseng may open higher at around 22300 today and may even rise higher after 2 days of declines. The drop in oil prices may boost investors' confidence to buy into stocks with optimism that inflation will go down. China markets may also play a part in determining how high Hangseng will go today. With index being below 22000, bargain hunting may come in and help boost the market today. Hangseng may find its support at 22100 and its resistance at 22700 today.

Asian market preview 05/08/2008

US markets were closed moderately lower despite a plunge in oil prices which caused oil to close at 3-month low. Oil fell $3.69 to close at $121.41 per barrel and it has plunged nearly $26 per barrel or 17.6% since its peak at $147.27 set on July 11. Oil's retreat was a welcoming news to the markets that initially were sold off after a report from Commerce Department indicated that inflation gauge tied to consumer spending had surged 0.8% in June, which was the biggest jump since February 1981. Investors were also trading cautiously ahead of The Fed meeting which begins later on tonight. Investors are expecting The Fed to do nothing about interest rate in the coming meeting as weak economic data will still give huge pressure to economic recession. The decline of oil prices in recent weeks also give some relief to inflationary fears for The Fed. Investors will be keenly interested in The Fed's economic assessment statement that will accompany the rate decision. Commerce Department also reported that orders to US factory jumped at the fastest pace in six months in June but markets seem to be immune to the news. The Dow ended down by 42.17 pts or 0.37% to 11,284.15, S&P500 fell 11.30 pts or 0.90% to 1,249.01 while Nasdaq fell 25.40 pts or 1.10% to 2,285.56.

Asian markets may open lower yet again today following weaker economic data that came out of the US and also the nervousness waiting for The Fed's rate decision. Declines in oil prices may boost markets later on in the day as inflationary pressure is being taken off the investors' shoulder. Oil was recently traded around $120.60ish per barrel, gold traded around $893.25ish and JPY traded around 108.10ish. Nikkei futures was closed at 12970 in CME last night compared to the close of 12915 here yesterday. Nikkei have opened at 12910 and have moved higher in the first 15 minutes before going back down and then moved back up after 1 hour of trading.

Kospi have opened lower at around 198.75 today and have moved higher to set current high at 201. It then moved back down on US concerns towards 199 and was recently traded at 199.25 at the time of my writing. Kospi is expected to be trading around 197-202ish today with investors are likely to wait for The Fed's decision. The decline in oil may help investors looking for bargain stocks today.

Hangseng may open slightly lower at around 22300 today and may rebounded up today following the huge decline in oil last night in the US. If oil continues to declne, Hangseng may be boosted further with optimism. However, most investors are likely to sit on the sidelines today to wait for news from The Fed. China markets may also play a part in today's trading and may determine how high Hangseng will go or how low it will drop. Hangseng may find its support at 22000 today and its resistance at around 22700.

Asian market preview 04/08/2008

US markets were closed lower on Friday after another decline in jobs, flat manufacturing activity and a massive quarterly loss at General Motors. Despite the pullback, markets were calmer than the first 4 days of the week when The Dow had triple digit losses or gains over good economic data or bad news from financial sector. Friday's report was not as bad as anticipated as they portrayed that the economy is still sagging in 2nd half of the year. The Labor Department said that jobs fell for 7th straight month to 51,000 which was less than expected but unemployment rate rose greater-than-expected 5.7%. The report came after jobless claims jumped unexpectedly to a five-year high on Thursday. Meanwhile, the Institute for Supply Management said manufacturing activity was flat in July and Commerce Department reported that building activity decline in June. Oil price also rose $1.02 to $125.10 per barrel but have retreated from an earlier spike of more than $4. The Dow fell 51.70 pts or 0.45% to 11,326.32, S&P500 fell 7.07 pts or 0.56% to 1,260.31 while Nasdaq fell 14.59 pts or 0.63% to 2,310.96.

Asian markets may open lower today following another string of weak economic data which came out of the US on Friday. With oil prices rose again, halting the decline, investors may come to think that the prospect of oil prices to drop below $100 in near term is still quite far. However, Asian markets may shrug off the negative start to the day if oil prices stabilize again and if the prospect of earnings around the region is still positive. Oil was recently traded around $125.80ish per barrel, gold traded around $911.25ish and JPY traded around 107.50ish. Nikkei futures was closed at 13110 in CME compared to the close of 13125 here on Friday.

Kospi may start the day lower today and may even breach the 200 mark if investors get into selling mood at the 1st day of the trading week. Kospi was recently been battered quite bad even with regional positive boost. If Kospi managed to stay above 200 mark, it may stabilize and may even go higher later on in the day. Volatility may be high as investors are still struggling with the prospect of higher oil and more financial troubles from the US and disappointing local earnings.

Hangseng may open lower today at around 22700ish. However, with strong China markets outlook, Hangseng may even turn the decline into positive thing later on in the session as it did on Friday. Investors may already take into account the higher oil prices and they're expecting the Chinese government will enforce the economic growth in near term rather than fight inflation. With Olympic games approaching, China markets may also get a positive boost and that may help Hangseng. Hangseng may find its support at 22600 and its resistance at 23200 today.