People of ancient Japan dreaded, even loathed felines to the point that their folklore labeled cats as cursed animals. The cat, not native in origin to Japan, was imported by a Japanese nobleman around Tenth Century BCE. The traits of the cat were not well received as they tended to tear down paper walls and scratch up wooden posts and furniture.

Legend speaks of the cat and the serpent as the two animals that did not cry when the Buddha died. Moreover, cats were known to hunt the rat, the legendary animal that was sent to gather medicine for the Buddha. With time, Japanese myth developed even further to grant felines power over dead spirits. Japanese sailors, although disliking cats, brought along three-colored cats on voyages to protect them from dead spirits believed to reside in the whitecaps of ocean waves.

Nekomata: A cat would become a “goblin cat” if the remedy, a severed tail, was not applied.

Obaké-neko: Mistreated and old cats could become “ghost cats” by legend.

Maneki-neko: A figurine with a raised paw encourages visitors, money, good luck, or good health, depending color and which paw it has raised.

However, a Thai legend speaks of cats that saved a golden goblet belonging to the Buddha, by hooking their tails around it and not letting go. This accounts for the kink at the end of the tail of almost all Thai cats. Anther story states that when a certain princess went to bathe and gave her rings to a cat to guard, it kinked its tail so they wouldn't fall off.

Source - http://www.muralpages.com/hypnofantasia/mysteries.htm