Monday saw markets in Japan open on a positive note. However, after such dramatic gains investors started taking profits and left the Nikkei index down almost 1.5% for the day. Ahead of the Federal Reserve policy meeting on Tuesday, the general feeling was that interest rates would be left alone, rather than being cut further to boost the economy. In addition to this, the Bank of Japan also starts a 2 day policy meeting on Tuesday but nothing radical is expected. Hong Kong's Hang Seng Index and Taiwan's Weighted Index both managed gains for the day, as did the Kospi index in South Korea and the All Ordinaries Index in Australia. New Zealand ended the day as it had started.
Tuesday saw the Nikkei index grow by over 2.5% with investor confidence high for yet more recovery in the US. Everyone waited to hear the news from the Federal Reserve. Investors were also keen to hear from the Bank of Japan as they started their policy board meeting today. Most other Far Eastern markets remained static, with the exception of South Korea which kept forward momentum and ended on a high not seen for nearly 2 years.
Wednesday saw an about turn for the Nikkei in Japan, erasing almost all of yesterday's gains. Everyone seemed to ignore the news from the US that interest rates were left alone and the stance was changed to 'neutral'. This means that their feelings are not to increase rates and not to put them down any lower. This indicates they are ready to move, whichever way the markets go. The Bank of Japan concluded they would keep the easing monetary policy for the time being. Following seven days of gains, the market in South Korea ended lower as Gross Domestic Product data was lower than expected. The story was the same for the Hang Seng in Hong Kong. Elsewhere, the markets in Taiwan rose, as did Australia and New Zealand.
Markets were closed in Japan on Thursday for the holidays. Markets fell in Hong Kong with investors anticipating upward rate movements in the US. The Kospi Index in South Korea also fell, as did the Weighted index in Taiwan, the All Ordinaries in Australia, the NZSE 40 in New Zealand and the Straits Times index in Singapore.
Friday saw the Bank of Japan more positive about the economy in March. However, they see that the Japanese economy is getting worse but that improvements in the US will increase demand for exports and will hopefully pull them back. Despite the bitter sweet news, the Nikkei fell by over 1.5%. Markets in Australia and New Zealand also fell back. It seemed that the rest of the Far East had a better day with Taiwan, South Korea, Singapore and Hong Kong gaining.