Unlike the rest of the world, Far Eastern markets fell into the red on Monday, awaiting news from the Government on Wednesday on anti-deflation. The Nikkei in Tokyo, Kospi in South Korea, Hang Seng in Hong Kong, Straits Times in Singapore, KLSE in Malaysia and the Weighted Index in Taiwan all headed south for the days trading.
Tuesday saw indices gain on the back of the US surge but then fall back as details of Japan's anti-deflation package were leaked. The plans were not favourable. By close of play, markets across the region were mixed, with only the Hang Seng, Kospi and Straits Times managing to stay in the black.
Wednesday saw investors waiting for the release of the Government's anti-deflation package and news from the Bank of Japan on monetary policy. Nothing that came from the US on Wednesday or the rest of Europe could change investors minds. Despite a rise in the Nikkei of over 3.5%, January's retail sales apparently fell over 4.5%, compared to last year. This means that spending has been down for 10 months now. Elsewhere, gains were seen for markets in Hong Kong, South Korea, Thailand, Singapore and Taiwan.
Thursday saw the arrival of long awaited news on anti-deflation and yet more easing from the Bank of Japan. The bank decided to increase its purchases of government bonds to 1 trillion Yen. This was increased from 800 billion Yen and aims to inject more money in to the financial system. The Nikkei closed slightly up for the day. Markets in Singapore, Hong Kong and Seoul markets fell. In Seoul, this was despite a rise in the Consumer Price Index for February. Markets in Taiwan were closed for the holidays.
Friday saw the Nikkei index shoot up to the best levels seen in 2 months. This was on the back of technology stocks and increased confidence, following news that unemployment in Japan had fallen and consumer spending was on the up. Hong Kong and Taiwan markets saw a reversal of fortune and stayed in the red. Markets in South Korea were closed for the holidays. After a return from holiday on Thursday, Taiwan's Weighted Index continued it's slide in the red.