A bad start to the week for Tokyo on Monday as expectations of poor corporate earnings set in. Bad news from the Prime Minister regarding bank bad debts did nothing to improve investor sentiment or bank share prices. The Nikkei ended down over 1.5% for the day. Despite early gains in South Korea, these fell back late in the day to leave the Kospi down over 1.5%. The Taiwan Weighted Index also closed down slightly. Conversely, the Hang Seng index in Hong Kong managed a gain of just under 0.5%.
Tuesday saw the Nikkei fall again but this time to a massive low, not seen for 18 years. Again it was bad earnings news and doubts over economic reform. The Hang Seng did not manage to gain again for the second day, falling by over 1% at close of play. However the market in South Korea shrugged off yesterday's losses. The Kospi broke the 5 days loss and closed up almost 1.5%. Taiwan's Weighted Index closed slightly down for the second day this week. Markets in Australia, New Zealand and Singapore all closed with losses for the day.
Wednesday again saw the same problems for Japan with the Nikkei falling again to another 18 year low point. It was again bank bad debt problems and scepticism over economic recovery.
Japan's Central Bank started a two day meeting on Thursday and monetary policy appears the forerunner. It was holiday fever in Taiwan with the Weighted Index rising by almost 1.5%. This market will be closed from the 7th February 2002 until the 17th February 2002 inclusive. The South Korean Kospi index managed a slight gain for the day whereas the Hang Seng once again fell. Australia also fell with Singapore managing a gain. New Zealand did not trade due to a public holiday.
After terrible news for banks during the week, they seemed to inherit the Friday feeling (on Thursday) and pushed strongly ahead. With the G7 meeting soon and a visit from the US president during the middle of the month, investors bought bank stocks in the hope that the Government would do more to solve the bad debt problems. The rush on bank stocks managed to push the Nikkei up by almost 2%. In the opposite fashion, Hong Kong, South Korea, Australia and New Zealand all saw losses.
Friday continued the good news for Nikkei, closing up over 1% for the day. Hong Kong and Singapore also followed the upward trend, as did Australia. New Zealand again closed lower.