Both the Nikkei 225 and the Topix index saw gains in Tokyo on Wednesday despite problems in communications caused by a significant earthquake off the coast of Taiwan. The Nikkei added 0.31 percent to 17,223.15, while the Topix gained 0.27 percent to 1,676.95.

Nippon Steel saw a second day of gains in a row as it added 0.16 percent to ¥643 on expectations by investors that prices will go up for the fourth consecutive year.

In the automobile manufacturing sector, Toyota was 1.93 percent higher to ¥7,920 on media reports that the chairman of Toyota and the chief executive of Ford had been engaging in discussion. The gains came even though Toyota minimized the talks and the possibility that they meant an upcoming merger or sharing of technology. Some analysts have suggested that Toyota might look for a cooperation agreement with an American carmaker in order to lessen the impact of its growing market share in the United States.

Among losers, Goodwill Group dropped 10 percent to ¥10,600 on rumors that the staffing agency could be the target of an investigation of its fees for its nursing care business.

After losses early in the session, the Nikkei 225 managed to add 0.3 percent on Friday to close at 17,104.96. The Topix index was up as well, but only by 0.1 percent to 1,672.10

Miners with exposure to copper were lower on the day after copper prices fell overnight. Dowa Holdings dropped 2 percent to ¥990, while Sumitomo Metal Mining fell 2.8 percent to ¥1,474. Meanwhile, with oil prices also falling overnight, Nippon Mining Holdings, with upstream oil interests, dropped 1.7 percent to ¥852.

Mergers and acquisitions news sent glassmaker Hoya and camera manufacturer Pentax higher on the news that the two companies will merge. Hoya added 1.3 percent to ¥4,570, while Pentax was 5.9 percent higher to ¥731.

With a prediction that its global output would rise to 9.42 million cars in 2007, Toyota Motor gained 1.6 percent to ¥7,800. If Toyota’s expectations come to fruition, they would likely become the largest auto maker in the world.

Among domestically-focused sectors, real estate was up 1 percent as a whole. The sector was led by Mitsui Fudosan, which added 3.3 percent to ¥2,835 after Goldman Sachs upped its recommendation from “neutral” to “buy”. In the retail sector, meanwhile, department store Daimaru gained 2.8 percent to ¥1,552 on a higher dividend prediction.

Weakness in the yen helped the Tokyo equities markets to make gains on Thursday. However, advances were limited on the Nikkei because of a scandal in the consumer finance sector. The Nikkei 225 closed at 17,047.83, a gain of 0.2 percent, while the Topix index added 0.3 percent to 1,671.30.

Export-focused sectors were especially helped by the weak yen. Toyota added 1.7 percent to ¥7,680, while construction equipment manufacturer Komatsu gained 3.4 percent to ¥2,410.

The utilities sector also saw gains again, as the sector has gained 17.5 percent since the end of September on high dividend payments to shareholders. Tokyo Electric Power was 1 percent higher to ¥3,910 and Kansai Electric Power was up 1.6 percent to ¥3,260.

The steel sector advanced on positive comments from Merrill Lynch and on the possibility of further consolidation in the sector worldwide. Nippon Steel gained 0.5 percent to ¥601 on rumors that it will gain control of Brazilian steel company Usiminas. Meanwhile, Sumitomo Metal Industries added 4.9 percent to ¥493 on a Merrill Lynch upgrade from “neutral” to “buy”.

Consumer finance companies were affected by a 12-day business suspension of Sanyo Shinpan for improper practices. Shinpan dropped 5.5 percent to ¥3,260, while Aiful fell 5.1 percent to ¥3,360 and Credit Saison was 2.7 percent lower to ¥4,020.

In the securities sector, Nikko Cordial began a comeback after being fined for accounting irregularities, adding 7.1 percent to ¥1,237.

The Tokyo equities markets were lower on Tuesday as investors took the opportunity to profit from recent gains in the markets. The Nikkei 225 dropped 1.1 percent to 16,776,88, while the Topix index was 1.2 percent lower to 1,645.40. The Mothers index of small caps was also lower, dropping 1.9 percent to 1,127.74.

The real estate sector suffered losses as investors expressed concerns over the whole sector in the wake of troubles for Misawa Homes, which dropped 18.3 percent to ¥357 on top of Monday’s losses. The declines came after it was reported over the weekend that one of Misawa’s subsidiaries had inflated sales figures during the past few years. The sector as a whole was 2.7 percent lower as Mitsui Fudosan fell 2 percent to ¥2,750, Sumitomo Realty & Development was down 3.1 percent to ¥3,730, and Mitsubishi Estate dropped 3.2 percent to ¥2,990.

In the securities sector, Nikko Cordial was having troubles of its own as the brokerage was the target of an investigation amid allegations that it had overstated its earnings. With the threat of being delisted from the Tokyo Stock Exchange hanging over its head, orders to sell, down 14.1 percent at ¥1,219, vastly outnumbered buy orders. The stock did not trade on the day and analysts were doubtful that it would trade on Wednesday, either.

The Nikkei 225 managed to add 0.3 percent to 16,962.11 on Monday, its highest close in seven months, and the Topix index gained 0.5 percent to 1,665.32 on Monday as investors waited for Tuesday’s decision by the Bank of Japan on interest rates.

In the utilities sector, Tokyo Electric Power was 2.1 percent higher to ¥3,800 as investors used it as a safe place to put their money while they wait to see what will happen with interest rates. Utilities are seen as safe because demand isn’t tied to how the rest of the economy is performing.

Export-focused stocks also saw gains on the day after good news on consumer prices emerged from the United States on Friday. In the automobile manufacturing sector, Honda added 2.6 percent to ¥4,360. Meanwhile, Sony gained 2.2 percent to ¥5,160.

Toshiba was up 1.3 percent to ¥780 on the news that its Westinghouse division has been awarded a contract to build four nuclear reactors in China.

Loser on the session included Japan Tobacco, which dropped 5.2 percent to ¥566,000 after last weeks gains after it said it will bid for UK tobacco company Gallaher. Also dropping was securities company Nikko Cordial, which fell 4.8 percent to ¥1,419 after weekend reports that the Japanese Securities and Exchange Surveillance Commission is looking at the company for possible manipulation of its earnings in its fiscal year 2004.

After a new Tankan report on business sentiment from the Bank of Japan came out about as expected, the Tokyo equities markets were up on Friday. The Nikkei 225 added 0.5 percent to 16,914.31, while the Topix index gained 0.3 percent to 1,657.40. Even though the Tankan figures were seen as positive, analysts are still convinced that the Bank will decline to raise interest rates when it meets next week.

In the tobacco sector, Japan Tobacco was 3.1 percent higher to ¥597,000 after it said it is talking to UK company Gallaher about a purchase.

The electronics sector added 0.5 percent as a whole, and Sony gained 1.6 percent to ¥5,050.

Domestically, the retail sector was up 0.4 percent, while Japan’s largest retailer, Aeon, was 1 percent higher to ¥2,575.

The securities sector also saw gains. Nomura Holdings added 1.2 percent to ¥2,165, while Daiwa Securities Group was up 1.4 percent to ¥1,336.

Transport sectors were driven lower by an increase in crude oil prices. Domestic airline All Nippon Airways dropped 0.9 percent to ¥433. Among shippers, Mitsui OSK was 0.5 percent lower to ¥1,110 and Nippon Yusen fell 1.1 percent to ¥847.

The rise in oil prices was good news for Inpex, however, which added 2.1 percent on the session to ¥1,010,000.

Export-related stocks were higher on Thursday in Tokyo as the yen continued to stay weak and as new data was released in the United States that showed retail sales rose 1 percent in November. The Nikkei 225 was 0.8 percent higher to 16,829.20, its highest close in seven months, while the Topix index also ended with a gain of 0.8 percent, to 1,651.85. Meanwhile, the Mothers index of small and mid-caps gained 1.7 percent to close at 1,144.42.

The gains in US sales helped the electronics sector. While Pioneer dropped 1.8 percent to ¥1,633 on a downgrade from “buy” to “neutral” from Nomura Securities, others in the sector benefited from the new sales numbers. Matsushita Electric Industrial was 0.6 percent higher to ¥3,345. Canon gained 1.7 percent to ¥6,650. Sony added 1.8 percent, helped along by its insistence that it would meet its target of shipping 3 million PlayStation 3 game consoles globally by the end of the month and that 6 million units will be shipped by the end of March.

In the tobacco sector, no news was not necessarily good news for investors. There was nothing new on a possible bid by Japan Tobacco for UK tobacco company Gallaher. This lack of fresh information sent Japan Tobacco 2.4 percent lower to ¥579,000 just a day after reaching its highest share price ever.

The Nikkei 225 and the Topix index both saw gains on Wednesday as export-focused stocks were up, but gains were limited by declines in utilities and in the consumer finance sector. The Nikkei added 0.3 percent to 16,692.93, while the Topix gained 0.2 percent to 1,639.19. Meanwhile, the Mothers index of small and mid-cap stocks dropped 1.1 percent to 1,125.85.

In the retail sector, department stores saw gains but weren’t able to lift the sector as a whole. Takashimaya was 1.1 percent higher to ¥1,717, while Isetan ended 1.6 percent higher to ¥2,150. On the other hand, Seven & I dropped 0.6 percent to ¥3,630.

Exporters that saw gains included Canon, which added 1.1 percent to ¥6,540. In the electronics sector, Sony was 1.9 percent higher to ¥4,880. Sharp, however, dropped 1.5 percent to ¥2,040 on the news that it is being investigated for price fixing of liquid crystal displays.

Utilities were down on profit-taking. Tokyo Electric Power fell 0.5 percent to ¥3,720, while Kansai Electric Power and Tohoku Electric Power each dropped 0.7 percent to ¥3,050 and ¥2,895 respectively.

The consumer finance sector declined after parliament passed a bill that will cut the maximum amount of interest the lenders can charger their customers. Takefuji was 1.1 percent lower to ¥4,470, while Aiful fell 1.6 percent to ¥3,610 and Credit Saison dropped 1.9 percent to ¥4,100.

The Tokyo equities markets saw gains on Monday, despite investor caution ahead of a decision on US interest rates by the US Federal Reserve and the release of the latest Tankan survey from the Bank of Japan, both due soon. Also limiting gains was a significant decline in the consumer finance sector. The Nikkei 225 and the Topix index each added 0.7 percent on the session, to 16,527.99 and 1,627.97 respectively.

The consumer finance sector’s declines came after UBS forecast that lending would be down b y 30 percent in the next three years. Aiful dropped 3.4 percent to ¥3,660, while Takefuji fell 4 percent to ¥4,530 and Acom was 6 percent lower to ¥4,260.

In the tobacco sector, Japan Tobacco added 2.9 percent to ¥566,000, the third session of gains in a row for the company, as talk continued concerning its bid for UK tobacco company Gallaher.

Consolidator rumors sent the steel sector higher on the session even though some analysts see a successful hostile takeover of any Japanese steel company as only a slight possibility. Kobe Steel added 2.3 percent to ¥402, while Sumitomo Metal Industries gained 3.2 percent to ¥482. JFE was 3.8 percent higher to ¥5,720 and Nippon Steel was up 4 percent to ¥570.

The automobile manufacturing sector saw gains on a weakening yen. Toyota gained 1.4 percent to ¥7,140, while Honda Motor added 1.7 percent to ¥4,140.

Meanwhile the Osaka-listed games company Nintendo added 3.5 percent to ¥28,650 on data showing that sales of its Wii video game console are booming in the US.

Tokyo equities markets were higher on Thursday even though the non-ferrous metals sector declined by 0.4 percent after commodities prices fell in the overnight hours. The Nikkei 225 added 0.6 percent to 16,473.36, while the Topix index gained 0.5 percent to 1,622.77.

The recent advances in the consumer finance sector seemed to be slowing down. Takefuji remained steady at ¥4,770 and Credit Saison was 0.9 percent higher to ¥4,300. Only Aiful managed a significant gain, adding 4.1 percent to ¥3,850.

Two companies made their trading debuts on the session, but both IPOs suffered losses on their first day. Independent investment research business Japaninvest debuted with an IPO price fo ¥150,000 but closed down to ¥135,000. Meanwhile, internet service provider Nifty’s IPO price was ¥210,000; it ended the session at ¥203,000.

In the telecommunications sector, results were mixed. KDDI added 0.3 percent to ¥784,000, but Softbank dropped 0.4 percent to ¥3,475 and NTT DoCoMo fell 1.1 percent to ¥180,000 on the news that it has lost subscribers for the first time.

Among companies that deal in non-ferrous metals, Toho Zinc dropped 0.4 percent to ¥979, while Sumitomo Metal Mining fell 0.7 percent to ¥1,524 and Mitsui Mining $ Smelting was 1.3 percent lower to ¥551.