Monday was the first day of the new fiscal year for Japan. The Nikkei index made gains early on in the day but these were wiped out and the index closed flat for the day. There was positive news from the Bank of Japan's Tankan survey. It showed that confidence of major manufacturers had remained static at -38 for the quarter. Although this did not show increasing confidence, the trend for quarter on quarter declines has stopped. News came from the Financial Services minister, Hakuo Yanagisawa that the Government will only insure the first 10 million yen (or $75,000) of every time deposit. This moves away from fully insuring time deposits. In Taiwan, the Weighted Index pulled back losses for the day to end up by almost 0.5%, following the earthquake yesterday that killed at least 5 and damaged the Taipei financial centre tower building. In South Korea, the Kospi index lost over 2% by close of play with fears that increased strike action could threaten Government privatisation plans.
Tuesday saw positive news from the US on manufacturing help the Nikkei to a close in the black by 1.6%. News seemed more positive from South Korea with investors buying blue chips and pushing the Kospi up by almost 3.5%. It was back to trading after the holidays for Hong Kong although investors were not positive about the economy, resulting in a 1.4% loss. The All Ordinaries Index in Australia suffered by almost 1% with fears of possible interest rate rises on the horizon. The New Zealand NZSE 40 closed slightly up for the day, as did the Straits Times Index in Singapore.
Wednesday saw another day of gains for the Nikkei, this time closing up by almost 2%. Gains were related to oil and technology stocks. The positive feelings also hit Seoul with the Kospi index ending at its highest level in over two years. The Weighted index in Taipei also managed a high not seen for a year and a half. Not so good news in Hong Kong as the Hang Seng fell for a second day. This time the losses were attributed to falling airline stocks after oil prices rose. Good news for Australia, the Central Bank left rates alone. The All Ordinaries closed slightly down for the day. The NZSE 40 closed flat and the Straits Times in Singapore lost almost 1%.
Thursday saw the Nikkei slightly back in the red after profit taking on technology shares. The news in Seoul from the Bank of Korea to leave interest rates alone at 4% resulted in the Kospi closing flat for the day. The Hang Seng in Hong Kong also managed a flat one but the Weighted Index in Taiwan closed down 1.4% after a spate of profit taking. Markets in Australia and Singapore also fell for the day.
Friday was a national holiday in South Korea. Markets were also closed in Hong Kong for the Ching Ming festival and in Taiwan for Tomb Sweeping day. In Japan, loss warnings on telecommunication stocks encouraged investors to sell - and sell they did - pushing the Nikkei down by almost 0.5%. Australia and New Zealand had profitable days, with the indices rising 0.5% and 0.3% respectively. In Singapore, the Straits Times index also managed a slight gain to close up for the day.