Asian Markets Opened Higher, But Look Doubtful

Asian trade: Asian markets opened higher for a third day in a row, but it looks like the momentum is dying down, since the markets are starting to head lower. U.S. futures also fell in the Asian session, having the S&P down by 6.80 points.

In the Asian session, the Nikkei gained 40.38 points (0.48%) to 8,369.43, while the Australian S&P/Asx fell 39.70 points (1.09%) to 3,591.90. Asian shares are still down this year by almost 50%, and are heading for the worst year in the last two decades.

A report presented in the Asian session showed the Japanese economy contracted by 0.5% in the third quarter, much faster than anyone would have expected. Confidence among the Japanese business environment is sitting at a record low level, as the economy is heading towards a recession. Some analysts say that the Government might be forced to extend the spending program with another $200 billion in order to jump-start the economy. Now, along with the credit crisis, the Government has to fight a rising jobless rate and a weak export market, which pretty much is the main engine behind the Japanese economy for the last decades.

Crude oil posted some small gains lately, as some speculate demand will pick up again. Crude oil for January delivery gained $0.20 to $43.90.

Gold extended the range developed in the U.S. session during the Asian trading hours. Bullion for immediate delivery fell $2.60 to $772.20.

Previous Wall Street trade: Stocks rose for a third day as hopes the new administration's economic stimulus plan will boost the sagging economy. President Elect Obama pledged Saturday to jumpstart an infrastructure program designed to be the largest since the 1950's Interstate Highway Program.

"Coming off the Nov. 17 low, the S&P has now rallied 18.3%," said Matthew Carniol, chief currency strategist at TheLFB-forex.com. "The combination of an economic stimulus with all of the monetary and other fiscal policy measures probably presents a new dynamic for traders to speculate on. The S&P closed above 900 for the first time since Nov. 13, so let's see if it can hold this time."

Previous European trade: European stocks rallied, led by industrial and commodity shares, after U.S. President-elect Barack Obama pledged the largest spending on infrastructure since the 1950's. German Dax +7.63% to 4715.88. U.K. Ftse +6.19% to 4,300.06.