Decision on whether to accept News Corp bid could alter the US media landscape.
|Japanese share prices also slumped following
Wall Street’s overnight plunge [AFP]
Hugh Johnson, chairman of Johnson Illington Advisors, said: “The aversion to risk is as strong this morning as it was yesterday.
“Most buyers are stepping back and just watching the market open.” Johnson said eventually buyers will “make their decisions on whether to step in and start to buy”.
Al Goldman at AG Edwards said, however, that the sharp selloff on Thursday was the result of “old news – credit problems, subprime loans, selected earnings disappointments and oil prices.”
Goldman said the market “was vulnerable for a correction after its big rally the past three weeks” and said he believed the recovery late in the session on Thursday “will pick up steam today”.
“Today, ideal action would be a sharp early down, test yesterday’s lows at Dow 13,330, hold, then rally. We look for an up session by the close,” he said.
Market players around Asia are carefully watching to see the extent o fthe knock-on effects of US troubles, said Kazuhiro Takahashi, head of the equity department at Daiwa Securities SMBC.
“They will take one month or so to make sure the problem isn’t hurting the global economy, which is largely expected to be solid towards next year,” Takahashi said.
“It is unlikely that the markets will rise back sharply after such a big drop,” he added.