Monday saw Tokyo markets cautious and ending slightly lower for the day, mainly due to the US markets being closed for Martin Luther King day. Taiwan fared better with a 5% index rise, following a cabinet move around to try and better the economy. The markets in Hong Kong and Seoul also rose.
Tuesday saw doubts from Tokyo over the US economy getting stronger. This would obviously hit exports even though the Yen was weaker. Banks and export company stocks fell, leading to a fall on the Nikkei of over 2%. Elsewhere, markets in Seoul and Taipei rose with falls seen in Hong Kong.
Wednesday again saw markets in Tokyo fall as news from the US about Kmart's bankruptcy filing filtered through. The Topix index closed at its lowest point in almost 17 years. Taipei and Hong Kong markets also fell for the day with Seoul managing a gain. This gain was mainly due to gains in steel, telecommunications and technology.
Thursday was a better day for Tokyo, seeing the first gains of the week. With a combination of factors such as positive gains on the US Nasdaq and more than a 3 year low on the Yen, investors rushed for export technology stocks. The Topix ended lower, as did the Kospi in South Korea and the Hang Seng in Hong Kong. News expected from the US Federal Reserve did nothing to inspire buying, leaving potential investors cautious. Following the Federal Reserve's more positive news about the US economy and the fact that interest rates would probably not be cut for the 12th time, markets in Asia took a turn for the better.
The Nikkei rose almost 1% with Taiwan, Hong Kong, Australia, New Zealand and South Korean markets also on the up. The weak Yen prompted more buying in the export sectors, boosting markets further.