Market in Japan and China should expect big pressure at the open on concerns over US credit markets, a lending freeze in China, and rising oil prices. .Shanghai, Hong Kong, and Tokyo exchanges are all likely to have large drops early.

On US exchanges, bell-weather Baidu (BIDU) dropped 2.4%. China Mobile (CHL) fell 5%. China Petroleum (SNP) was off over 6%. Aluminum Corp of China (ACH) dropped 7%. HSBC (HBC) dropped almost 3%.

Among Japanese shares trading on US exchanges today, Sony (SNE) slipped 2%. Toyota (TM) was off 1.3%. Canon (CAJ) fell 1.6%. NTT Docomo (DCM) fell 1.2%.

If an early sell-off turns into a rout, look for Asia exchanges to drop 3% or more by the close.

Douglas A. McIntyre