Tokyo’s markets were lower on Thursday.

The Nikkei 225 was 0.45 percent lower to 16,284.17 and the Topix index was down 1.01 percent to 1,548.07, while the Mothers market of small and mid-caps dropped 3.77 percent to 888.75.

Banks were still feeling the fallout of an announced $8.4 billion in writedowns by Merrill Lynch (NYSE: MER; TYO: 8675), which said it lost $2.24 billion in the third quarter.

Sumitomo Mitsui (TYO: 8316) was down 1.3 percent to ¥829,000, while Mitsubishi UFJ (TYO: 8306; NYSE: MTU) was 1.9 percent lower to ¥1,018 and Mizuho dropped 3.9 percent to ¥588,000 after a report that it will take a ¥50 billion ($438 million) first-half loss due to exposure to US subprime loans, although it will still make its income forecast due to gains in other units.

In the semiconductors sector, Toshiba (TYO: 6502; LSE: TOS) added 1.7 percent to ¥967 on the strength of better sales of flash memory chips.

On the other hand, Elpida Memory (TYO: 6665) dropped 4.7 percent to ¥3,860 after it said net income was down 75 percent in its fiscal second quarter on lower prices.

UBS downgraded Elpida from “buy” to “neutral”.

In the internet sector, Yahoo Japan (TYO: 4689) fell 9 percent to ¥50,800 after reporting a drop in profits for the quarter.

Tokyo’s markets also saw gains.

The Nikkei 225 was up 1.19 percent to 17,046.78, ending the session above 17,000 for the first time in nearly two months.

The Topix index was 1.48 percent higher to 1,639.79, while the Mothers market of small and mid-caps added 2.83 percent to 756.29.

The gains came on advances in the banking sector after US bank Citigroup (NYSE: C) said that earnings will return to “normal” in the current quarter.

Also helping gains was a prediction by former US Federal Reserve chairman Alan Greenspan that the credit slump could be over, and new data from the US signaled a possible further cut in interest rates.

Among banks, Mizuho (TYO: 8411; NYSE: MFG) added 2.6 percent to ¥661,000 while Sumitomo Mitsui (TYO: 8316) gained 3.9 percent to ¥915,000 and Mitsubishi UFJ (TYO: 8306; NYSE: MTU) was up 5.6 percent to ¥1,114.

Elsewhere, electronics giant Sony (TYO: 6758; NYSE: SNE) was 4.3 percent higher to ¥5,890 on Monday’s announcement that the initial public offering of its insurance division had brought in ¥320 billion as well as on the news that it will partner with the Qimonda unit of Infineon (FWB: IFX; NYSE: IFX) to develop DRAM chips for cameras and mobile phones.

Chipmaker Elpida (TYO: 6665) dropped 3.7 percent to ¥3,940 on concerns that it could lose market share to the new partnership.

On the other hand, companies that make chip-testing equipment saw gains.

Tokyo Electron (TYO: 8035) was 4.3 percent higher to ¥7,560 while Advantest (TYO: 6857; NYSE: ATE) added 5 percent to ¥3,750.

Data showing that factory output in Japan was up a seasonally-adjusted 1.6 percent in October sent the Tokyo equities markets higher on Wednesday. The Nikkei 225 went back over the 16,000 mark, ending the session 1.4 percent higher to 16,076.20. The Topix index added 1.6 percent to 1,580.10. The best factory performance came in the automobile manufacturing and semiconductors sectors, both of which saw gains on the session.

In the semiconductors sector, Advantest gained 1.5 percent to ¥6,060, while Elpida Memory was 3 percent higher to ¥5,550. Meanwhile among carmakers, Nissan Motor was up 0.7 percent to ¥1,299 and Toyota added 1.5 percent to ¥6,930.

The securities sector also saw gains. Nomura Holdings gained 3.7 percent to ¥1,955, while Daiwa Securities added 4.4 percent to ¥1,288. Banks did well, too, with larger banks seeing bigger gains than smaller ones could manage. Sapporo Hokuyo, based in Hokkaido, was up 0.9 percent to ¥1,110,000, while Bank of Fukuoka, which has its center of operations in Kyushu, gained 1.1 percent to ¥856. Meanwhile, Mitsubishi UFJ was 2.1 percent higher to ¥1,450,000.

The transport sector was up after Credit Suisse hiked target share prices there. Nippon Yusen gained 2.9 percent to ¥804, while Kawasaki Kisen was up 3.1 percent to ¥828 and Mitsui OSK added 5 percent to ¥1,046.

Early gains in the Tokyo equities markets on Wednesday were taken back as investors expressed concern about recent economic data. The Nikkei 225 managed to end the session 0.2 percent higher to 15,750.05, but the Topix index dropped 0.2 percent to 1,583.55.

Sony finally managed to see gains after recent declines due to the recall of its defective laptop batteries and a delay in the launch of its latest PlayStation gaming console in Europe. The consumer electronics and entertainment conglomerate added 1.2 percent to ¥4,940.

The semiconductors sector also managed advances, following on gains for the US sector. Advantest gained 3 percent to ¥11,590, while Tokyo Electron was 4 percent higher to ¥8,300 and Elpida Memory added 6.6 percent to ¥5,660.

Carmakers were higher, with Nissan up 0.6 percent to ¥1,291 and Toyota adding 1 percent to ¥6,200.

While Mitsui Fudosan, at ¥2,665, and Mitsubishi Estate, at ¥2,580, were unchanged on the session as a result of profit-taking in the real estate sector, NTT Urban Development dropped 1.3 percent to ¥927,000 and Sumitomo Realty & Development fell 2.6 percent to ¥3,370.

Consumer finance companies were lower on concerns that they might have to repay excessive interest charges to customers. Aiful was 3.3 percent lower to ¥4,730, while Takefuji dropped 3.4 percent to ¥5,940 and Acom fell 5.2 percent to ¥4,930.

Both the Nikkei 225 and the Topix index saw gains in Tokyo on Monday. The Nikkei added 0.7 percent to 15,456.81, while the Topix was up 0.8 percent to 1,572.01. Both domestic and export-focused sectors saw gains.

Not every sector was up, however. With chances of consolidation in the paper sector decreasing, Oji Paper and Hokuetsu Paper Mills were down on the day. Oji dropped 0.2 percent to ¥665, while Hokuetsu was 1.5 percent lower to ¥790.

The pharmaceuticals sector also saw losses. Astellas dropped 1.3 percent to ¥4,560. Chugai and Daiichi Sankyo fell by 1.9 percent each, with Chugai closing at ¥2,365 and Daiichi Sankyo ending the session at ¥3,150. Takeda was 2.4 percent lower to ¥7,400 on the news that a new cancer drug that it is developing has not shown the usefulness that had been hoped for.

The properties sector showed gains in anticipation of land prices having gone up when the National Tax Agency reports new data. Mitsubishi Estate added 1.9 percent to ¥2,375, while Mitsui Fudosan, Japan’s biggest mortgage lender, gained 2.1 percent to ¥2,435 and NTT Urban Development was 4.1 percent higher to ¥864,000.

Technology-related companies also saw advances on the day. Hitachi and Toshiba each gained 1.4 percent to ¥734 and ¥741 respectively. Elpida Memory added 2.2 percent to ¥4,590, while computer maker Fujitsu was up by 3.6 percent to ¥889.

In Tokyo, the Nikkei 225 closed at its lowest level in two months, dropping 1.8 percent to 15,857.87. The Topix index lost 1.4 percent to 1,615.86. Miners were down there, as well, with Nippon Mining losing 8 percent to ¥948 and Sumitomo Metal Mining down by 3.9 percent to ¥1,471.

Among Japanese semiconductor companies, Elpida Memory lost 5.2 percent to ¥4,890 on a restatement of last year’s earnings that showed an even wider net loss than had been previously reported. In the electronics sector, Sony added 0.8 percent to ¥5,120 on the announcement that mobile carrier KDDI has plans to launch a line of Walkman-type mobiles manufactured by Sony Ericsson. The news sent shares in KDDI up 1.4 percent to ¥737,000.

Seafood processing groups saw the biggest gains for the day in Tokyo, with Nippon Suisan adding 10.2 percent to ¥584 and Maruha gaining 3.3 percent to ¥282. The sector has been benefiting from foreign demand for their products.

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.

Profit-taking sent the Tokyo equities markets lower on Tuesday. The Nikkei 225 ended the day down 0.2 percent to 17,292.91, while the Topix index lost 0.3 percent to 1,749.65.

Despite the declines, some sectors saw gains. The rise in metals prices sent miners up. Sumitomo Metal Mining added 1.2 percent to ¥1,659, while Mitsubishi Materials gained 2.2 percent to ¥643.

Sea transport gained 1.4 percent as a sector as the yen weakened. Nippon Yusen added 1.9 percent to ¥746 and Mitsui OSK Lines gained 1.7 percent to ¥825.

Some advances were also brought about by broker upgrades. Ajinomoto, which makes food seasonings, added 8.9 percent to ¥1,373 on an upgrade from “sell” to “buy” by Merrill Lynch. In the real estate sector, Tokyo Tatemono was up 3.1 percent to ¥1,350 on an upgrade from Daiwa Research Institute.

Banks lost 0.9 percent, with Mitsubishi UFJ down 1.6 percent to ¥1,810,000.

Export-dependent stocks declined despite the weakening yen. Auto maker Honda dropped 0.5 percent. Chipmaker Elpida Memory was down 1.1 percent to ¥4,390. Consumer electronics manufacturer Sharp declined by 1.4 percent to ¥2,080. Camera manufacturer Konica Minolta dropped 1.6 percent to ¥1,523.

The Tokyo equities markets were down on Wednesday as investors took profits. The Nikkei 225 ended the day down by 0.8 percent to 16,495.48, while the Topix index was down 0.1 percent to 1,686.35.

The semiconductor sector was down on the day after Microsoft announced that it is putting off the release of its new Windows Vista operating system. The new release was expected to increase the demand for chips. Elpida Memory was down 3.1 percent to ¥4,100 and Advantest dropped 1.3 percent to ¥13,240.

The securities sector was down a bit as Nomura, Japan’s largest securities house, declined by 1.7 percent to ¥2,550.

Exporter Toyota, the largest automobile manufacturer in Japan, lost 1 percent on the day to ¥6,340. Elsewhere in the sector, Nissan Motor was up 1 percent to ¥1,373. Nissan’s truck manufacturing subsidiary, Nissan Diesel, gained 4.8 percent to ¥694 on the news that Volvo will purchase a 13 percent share of the company. The deal makes Volvo the largest single shareholder in the Japanese truck maker.

Educational book publisher Gakken was up 8.8 percent to ¥694 on the announcement that it has made a deal to develop and sell educational games in conjunction with game maker Square Enix, which was down 0.7 percent on the day to ¥3,020.

The Tokyo equities markets were down on Tuesday as domestically-oriented stocks could not sustain the gains they achieved on Monday. The Nikkei 225 ended the day down by 0.8 percent to 16,238.36, while the Topix index dropped 0.5 percent to 1,665.79.

Retail was down 0.6 percent in the sector with Seven & I down 1.3 percent to ¥4,460. In transport, East Japan Railway also lost 1.3 percent on the day to ¥861,000. The securities sector also dropped, by 0.7 percent, with Nomura down to ¥2,350.

Real estate managed slight gains, with Tokyu Land gaining 1.2 percent to ¥1,081.

Export-reliant sectors were damaged by the yen’s climb in relation to the US dollar. Electrical machinery was down 0.8 as a sector, with Elpida Memory falling 3.1 percent to ¥4,100 and Hitachi declining 0.9 percent to ¥805. Elsewhere, Toyota was down 0.3 percent to ¥6,320.

Chugai Pharmaceutical dropped 3.5 percent to ¥2,195 on a downgrade from “neutral” to “sell” from Merrill Lynch, which cited a probable drop in sales of, Epogin, an anti-anemia drug.

Rising crude oil prices helped upstream oil companies, with Japan Petroleum up 1.6 percent to ¥6,830 and Inpex up to ¥1,050,000.