The Tokyo equities markets were down significantly on Friday as some export-dependent stocks and commodities both saw declines due to the strength of the yen and higher interest rates in China. The Nikkei 225 dropped 1.2 percent to 15,906.23, while the Topix index was down 0.8 percent to 1,716.43.

The automobile manufacturing sector was down on the day, with Honda losing 1.1 percent to ¥8,090, while Toyota - Japan’s largest carmaker - dropped 0.2 percent to ¥6,660.

Electronics companies, which also export large numbers of goods, were mixed on the day. Consumer electronics giant Sony was down 5.1 percent to ¥5,720 even though its 2005/2006 profits were reported to be higher than had been anticipated. The decline on the day was said to be due to a lower earnings forecast for the 2006/2007 fiscal year.

On the other hand, consumer electronics manufacturer Pioneer and electronics parts maker TDK both posted gains on the day. Pioneer was up 2.5 percent to ¥2,015 on smaller than expected losses for the 2005/2006 fiscal year and an outlook that predicted a return to profitability this year. Meanwhile, TDK added 2.8 percent to ¥9,530 on a strong earnings report for 2005/2006 and a prediction of further growth in 2006/2007.

The steel sector saw losses on the day amid continued concern that higher interest rates in China will cut demand. JFE dropped 1.3 percent to ¥4,420 while Nippon Steel declined by 1.2 percent to ¥420.

The Tokyo equities markets were slightly higher on Thursday as a result of positive corporate earnings reports during the week. The Nikkei added 0.3 percent to 17,114.54 and the Topix index gained 0.4 percent to 1,729.37. Both domestic and export-dependent sectors saw advances on the day.

Automobile manufacturer Honda, reported record net profits for the fifth year in a row due to rising sales in the United States as well as on a weaker yen and a gain related to pensions. Shares were up 5.3 percent on the day to ¥8,180 as the company said it would do a two-for-one share split on July 1 in order to increase liquidity.

In the securities sector, Daiwa Securities reported on Wednesday that its quarterly profits had tripled, sending shares up 3.1 percent to ¥1,577. Meanwhile, internet brokerage Monex Beans added 4.3 percent to ¥146,000 on a quarterly report which showed that profits had doubled in the quarter.

Consumer electronics manufacturer Sharp was up 1.5 percent to ¥2,045 on higher quarterly profits due to higher sales in LCD televisions and cellphones.

The Tokyo equities markets recovered on Tuesday, as the Nikkei 225 added 0.33 percent on the day to 16,9790.29 and the Topix index was up 0.52 percent to 1,719.73. The Nikkei had lost 500 points on Monday, its largest one-day decline this year, on worries about a strengthening yen.

The banking sector was up on the day, with Mitsubishi UFJ gaining 1.7 percent to ¥1.83 million, while Mizuho added 0.8 percent to ¥984,000. The gains were attributed to investors who felt that domestic stocks were more likely to benefit from the Japanese economy’s recovery.

After earlier declines, the consumer finance sector was also higher on the day as investors wondered it the government will be willing to go through with new, lower limits on how much interest rates these lenders can charge. Aiful was up 6.17 percent on the day to ¥6,710, while Aicom added 5.7 percent and Promise gained 3.2 percent.

Export-oriented companies generally saw declines on the day. Among carmakers, Honda dropped 1 percent to ¥7,740 and Nissan dropped 2.1 percent to ¥1,443. Copier and camera maker Canon lost 2.9 percent to ¥8,400, while chip testing equipment maker Advantest was down almost 2 percent to ¥13,240. Most of these declines had to do with the strengthening of the yen, which hit a three-month high of ¥114 versus the US dollar.

The Tokyo equities markets were lower on Monday as investors worried about higher oil prices and a declining dollar in relation to the yen. The Nikkei 225 was down 2.8 percent on the day to 16,914.40 while the Topix index was 2.6 percent lower, closing at 1,710.76. Despite the drop in the dollar, exporters did no worse than domestic stocks.

Transport equipment and electrical machinery were two of the export-sensitive sectors to see big declines, dropping 2.7 percent and 2.5 percent respectively. Toyota dropped 2.8 percent to ¥6,710, for example. NEC dropped 4.5 percent to ¥834 when it warned of lower profits, while Hitachi was down 4.2 percent to ¥841, Sony fell 2.9 percent to ¥5,970, and Sharp declined by 2.4 percent to ¥2,015.

In domestic sectors, consumer finance companies were down again after the expected announcement that a government panel has proposed a drop in the maximum rate of interest the companies can charge on loans. OMC Card dropped 11.3 percent to ¥1,690 after one of its subsidiaries was told to suspend operations because it had violated rules on lending. Elsewhere in the sector, Credit Saison was down 4.4 percent to ¥5,670 and Takefuji lost 2.5 percent to ¥7,030.

In Tokyo on Friday, new broker recommendations on carmakers sent the sector up, helping the markets on the day despite drops in commodities-dependent companies. The Nikkei 225 and the Topix index each added 0.5 percent on the day, to 17,403.96 and 1,756.40 respectively.

Companies that make cellphone components also saw gains on the day after postiive earnings reports from Texas Instruments in the United States and from Nokia in Finland. Kyocera added 3.3 percent to ¥11,500 and Ibiden gained 0.7 percent to ¥5,570.

JP Morgan began coverage of the Japanese automobile manufacturing sector by giving both Toyota and Honda ratings of “overweight”. These recommendations sent shares in Toyota up 2.7 percent to ¥6,900 while Honda gained 4.6 percent to ¥8,120.

Miners were down after Thursday’s drop in commodities prices. Gold producer Sumitomo Metal Mining declined by 3.1 percent to ¥1,698, while Dowa Mining, which has interests in both copper and zinc, dropped 3.4 percent to ¥1,394. Toho Zinc was down 1.8 percent to ¥1,171. Mitsui Mining & Metal, which deals with nonferrous metals, lost 1.6 percent to ¥806.

Tokyo Steel Manufacturing lost 1 percent to ¥2,420 on a report that its net profits were down by 33 percent tin the 2005/2006 fiscal year. It forecast further declines in 2006/2007.

Oil-related stocks were up on the day in Tokyo on Thursday, but there was very little movement in the equities markets as a whole. The Nikkei dropped slightly, by 0.2 percent to 17,317.53, while the Topix index was unchanged at 1,747.86.

Oil stocks rose after a report that wholesale gasoline prices could go up next month, possibly as much as ¥4 per litre. Nippon Oil gained 1.5 percent to ¥961, while Showa Shell added 2.9 percent to ¥1,425 and Cosmo Oil added 2.4 percent to ¥679. Japan Petroleum Exploration was up by 3.2 percent to ¥8,370. Nippon Mining, which also has oil interests, gained 1.3 percent to ¥1,152.

Trading houses were also up. Mitsubishi added 3 percent to ¥2,920 and Mitsui & Co was up 1.1 percent to ¥1,824 when it said that it was thinking about new investments to expand its commodities trading.

On the other hand, the consumer loan sector was down again on the possibility that new lending laws might reduce the maximum amount of interest lenders can charge borrowers. Aiful was down 5.4 percent to ¥6,320, while Promise declined by 2.9 percent to ¥6,600.

The paper and pulp sector was down as well, by 1.8 percent as a whole, mainly on concerns about rising raw materials costs. Nippon Paper declined by 2.4 percent to ¥484,000. Oji Paper, Japan’s largest paper manufacturer, was down 2 percent to ¥686.

The Tokyo equities markets were higher on Wednesday. The Nikkei 225 added 0.7 percent to 17,350.12, while the Topix index gained 0.3 percent to 1,747.32. Most of the gains were among export-dependent companies, as investors grew more confident in the strength of the US economy as earnings reports from US-listed firms were strong and there were hints that US interest rates might pause in their upward movement soon.

Many of the gains came from the electronics and semiconductor sectors. Hitachi was up 1.3 percent to ¥863. Matsushita Electric, which makes the Panasonic brand of consumer electronics, added 0.9 percent to ¥2,795. Fujitsu advanced by 1.3 percent to ¥967 on a prediction of higher profits in the year just ended.

Mobile phone components maker Kyocera gained 3.1 percent to ¥11,170, helped by a positive quarterly report from US chipmaker Texas Instruments. Chipmaker Elpida Memory added 4.1 percent to ¥4,830 on an upgraded earnings prediction for the 2005/2006 due to reduced marketing and administration spending.

Among the losers on the day were consumer loan companies, which lost value on the news that a government panel could reduce the maximum interest rate they can charge customers. Promise dropped 4.1 percent to ¥6,800. Aiful, which was forced to close for three days last week over its aggressive collection methods, declined by 4.3 percent to ¥6,680.

The Tokyo equities markets were lower on Monday, with the Nikkei 225 and the Topix index each dropping 1.4 percent to 17,000.36 and 1,719.05 respectively. Worries over higher interest rates and rising crude oil prices were the culprits in the declines.

Export-dependent companies saw share prices drop as investors worried that US consumers would have less disposable income to spend. Automobile manufacturers were hit especially hard, with Toyota losing 1.3 percent to ¥6,650 and Honda losing 1.2 percent to ¥7,630. Among other exporters, Canon, the largest manufacturer of digital cameras in the world, dropped 0.6 percent to ¥8,250.

Domestic companies were also down on the day on concerns that the Bank of Japan might raise interest rates in order to support government bond yields. Among banks, Mitsubishi UFJ was down 1.1 percent to ¥1.82 million, while Mizuho dropped 2.8 percent to ¥972,000.

Non-bank lenders were also lower on the day. Consumer finance company Aiful dropped 6.8 percent to ¥6,710 after it was forced by government regulators to suspend business for three days due to aggressive collections methods. Other consumer finance companies also lost value, with Acom declining by 3.9 percent to ¥6,590, while Takefuji was down 2.7 percent to ¥7,350.

The Tokyo equities markets were down again on Wednesday on lower share prices in the US and concerns that recent gains in domestic stocks cannot persist. The Nikkei 225 and Topix index each lost 1.5 percent on the day to 17,162.55 and 1,742.89 respectively.

The electronics sector was down as Toshiba fell victim to two bits of negative news. First of all, US memory card manufacturer Lexar Media filed an infringement of intellectual property charge against Toshiba with the International Trade Commission. Also, Toshiba said on Tuesday that engineers employed by the company had changed test statistics for equipment for Japanese nuclear reactors. Toshiba’s shares dropped 2.6 percent on the day to ¥708.

High-tech manufacturer Kyocera dropped 4.1 percent to ¥10,480 and the electrical machinery sector as a whole dropped 2 percent on concerns about the strength of the US economy.

In domestic sectors, securities dropped 1.4 percent, with Nomura losing 1.3 percent to ¥2,685. Bankers dropped 2.1 percent, with Mitsubishi UFJ falling a larger 3.1 percent to ¥1,850,000.

In the retail sector, convenience stores had a rough day after Familymart issued a less-than-promising profits forecast for the 2006/2007 fiscal year. Familymart lost 7 percent to ¥2,580, while Lawson dropped 4.2 percent to ¥4,380, Circle K Sunkus declined by 2.4 percent to ¥2,815, and Seven & I was down 1.7 percent to ¥4,760.

The Tokyo equities markets were down on Tuesday as technology and domestic stocks were down. The Nikkei 225 dropped by 0.2 percent to 17,418.13 and the Topix index was down 0.4 percent to 1,770.18.

The technology sector declined after downgrades from Mizuho Securities. NEC Electronics declined by 2.9 percent to ¥4,620. Chip-testing equipment manufacturer Advantest dropped 2.8 percent to ¥14,580. Toshiba was down by 2.7 percent to ¥727.

The banking sector was down by 0.5 percent as a whole, with Mitsubishi UFJ losing 0.5 percent to ¥1,910,000.

Securities dropped 0.8 percent as a sector, with Japan’s largest securities house, Nomura, losing 1.6 percent to ¥2,720.

The real estate sector, however, was up a bit after earlier losses. Mitsui Fudosan added 0.8 percent to ¥2,650

The biggest gainers on the day were the miners and the oil sector. Among miners, Toho Zinc was up 3 percent to ¥1,220 and Sumitomo Metal Mining added 1.4 percent to ¥1,741. Nippon Mining, which deals both in non-ferrous metals and in petroleum products, gained 7.1 percent to ¥1,097. Among oil companies, Japan Petroleum Exploration was up 3.9 percent to ¥8,180, while Inpex added 2.4 percent to ¥1,260,000.