Tokyo’s markets gained on Monday.

The Nikkei 225 added 1.17 percent to 16,698.08, while the Topix index had its best day in a month with a gain of 2.07 percent to 1,606.49.

The Mothers market of small and mid-caps was up 3.7 percent to 965.17.

Carmakers were higher after Nissan (TYO: 7201) said that operating profit in its fiscal second quarter was up by 12 percent despite analyst sentiment that profits would be down in the quarter.

Nissan added 14.2 percent to ¥1,283, while Honda Motor (TYO: 7267; NYSE: HMC) and Toyota Motor (NYSE: 7203.T; NYSE: TM; LSE: TYT) each gained 3 percent, to ¥4,160 and ¥6,430 respectively.

In addition, Calsonic Kansei (TYO: 7248), which makes parts for Nissan, added 6.9 percent to ¥620.

Banks were higher after US mortgage lender Countrywide Financial (NYSE: CFC) predicted that it would return to profit in the fourth quarter, raising sentiment that the worst of the subprime crisis could be over.

Mitsubishi UFJ (TYO: 8306; NYSE: MTU) was up 4.7 percent to ¥1,091 while Mizuho Financial (TYO: 8411; NYSE: MFG) was 5.6 percent higher to ¥639,000 and Sumitomo Mitsui (TYO: 8316) added 9.5 percent to ¥919,000.

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 were mixed on Wednesday’s session.

The Nikkei 225 was 0.56 percent lower to 15,358.39 and the Topix index fell 0.43 percent to 1,563.86, but the Mothers market added 2.21 percent to 923.56.

The banking sector was disturbed by the report concerning Merrill Lynch’s (NYSE: MER; TYO: 8675) writedowns.

Mitsubishi UFJ (TYO: 8306; NYSE: MTU) was down 0.8 percent to ¥1,038, while Sumitomo Mitsui (TYO: 8316) dropped 1.3 percent to ¥840,000 and Mizuho Financial (TYO: 8411; NYSE: MFG) fell 1.5 percent to ¥612,000.

Gainers on the session included Chugai Pharmaceutical (TYO: 4519), which added 5.3 percent to ¥1,897 after it reported that net income was up 8.5 percent in the third quarter.

Other gains came on broker upgrades.

Sumitomo Metal Industries (TYO: 5405) was up 2 percent to ¥601 and Sumitomo Chemical gained 4 percent to ¥1,031 after Daiwa upped its rating on the materials sector to “outperform”.

In the retail sector, Fast Retailing (TYO: 9983) jumped 6.8 percent to ¥7,040 after Merrill Lynch increased its recommendation from “neutral” to “buy”.

In Tokyo on Friday the Nikkei 225 dropped 1.71 percent to 16,814.37 and the Topix index fell 1.64 percent to 1,591.28.

On the other hand, the Mothers market added 2.06 percent on the session to 902.03.

Banks were lower after Thursday’s report from US bank Bank of America (NYSE: BAC; TYO: 8648) that its profits had dropped by 32 percent in the third quarter.

Mitsubishi UFJ (TYO: 8306; NYSE: MTU) was down 1.3 percent to ¥1,027 while Mizuho (TYO: 8411; NYSE: MFG) was 2.2 percent lower to ¥616,000.

The consumer finance sector, however, saw gains after Acom (TYO: 8572) issued a preliminary report that its operating profit was up by 63 percent in its fiscal first half.

Acom jumped 18 percent to ¥2,640, while Takefuji (TYO: 8564) gained 17 percent to ¥2,700 and Aiful (TYO: 8515) added 15 percent to ¥2,270.

Exporters saw declines as the yen strengthened against the US dollar.

Toyota Motor (TYO: 7203.T; NYSE: TM; LSE: TYT) was 1.6 percent lower to ¥6,250.

Among domestically-focused shares, cement manufacturers were lower on downgrades from Mizuho.

Taiheiyo Cement dropped 3.5 percent to ¥356, while Sumitomo Osaka Cement fell 5.5 percent to ¥260.

Tokyo’s markets were higher Thursday.

The Nikkei 225 gained 0.89 percent to 17,106.09 and the Topix index was 1.09 percent higher to 1,617.75, while the Mothers market jumped 7.22 percent to 883.84.

Banks and brokers were higher after US bank JPMorgan Chase (NYSE: JPM; TYO: 8634) reported quarterly profits that were better than had been expected.

Mitsubishi UFJ (TYO: 8306; NYSE: MTU) added 2.3 percent to ¥1,040, while Sumitomo Mitusi (TYO: 8316) gained 3 percent to ¥848,000 and Mizuho Financial Group (TYO: 8411; NYSE: MFG) was 3.8 percent higher to ¥630,000.

Broker Nomura (TYO: 8604; NYSE: NMR; SGX: N33) was up 1.5 percent to ¥1,984 and credit card issuer Credit Saison (TYO: 8253) added 2.5 percent to ¥3,230.

Exporters did better after the yen weakened in relation to the US dollar.

Camera maker Canon (TYO: 7751; NYSE: CAJ) gained 2.7 percent to ¥6,100.

Retailers saw declines after the International Monetary Fund cut its prediction of Japanese economic growth from 2.6 percent to 2 percent for this year and from 2 percent to 1.7 percent for next year.

Departments store operator J. Front Retailing (TYO: 3086) dropped 2 percent to ¥1,026 while Seven & I (TYO: 3382) fell 2.2 percent to ¥2,870.

Tokyo’s markets were lower on the session Tuesday.

The Nikkei 225 was down 1.27 percent to 17,137.92 and the Topix index was 1.94 percent lower to 1,625.25, while the Mothers market dropped 3.98 percent to 833.11.

There were big losses in financial services of various kinds and in the real estate sector.

Banks were lower on new concerns about the subprime mortgage crisis.

Mizuho Financial (TYO: 8411; NYSE: MFG) was 5.1 percent lower to ¥631,000 and Mitsubishi UFJ (TYO: 8306; NYSE: MTU) was down 6 percent to ¥1,059.

Nomura Holdings (TYO: 8604; NYSE: NMR; SGX: N33), meanwhile was 0.5 percent lower to ¥2,070.

In the consumer finance sector Acom (TYO: 8572) dropped 4 percent to ¥2,305 and Orix (TYO: 8591) fell 6.6 percent to ¥25,230, while Takefuji (TYO: 8564) was down 7.2 percent to ¥2,380.

Meanwhile, in the real estate sector, Sumitomo Realty (TYO: 8830) was 2.9 percent lower to ¥3,980 and Pacific Management (TYO: 8902) dropped 8.1 percent to ¥159,000.

There were gains in the oil sector after crude oil prices soared above the $86 per barrel level in the US on Monday.

Inpex (TYO: 1605) added 2.4 percent to ¥1.3 million while refiner Cosmo Oil gained 3.3 percent to ¥527.

Tokyo’s markets were mixed on Wednesday.

The Nikkei 225 was 0.1 percent higher to 17,177.89, but the Topix index dropped 0.11 percent to 1,658.18 and the Mothers market was down 1.75 percent to 857.19.

Retailers saw gains on news of a cooperation agreement between Aeon (TYO: 8267) and Japan Airlines (TYO: 9205) in which the retailer will link its electronic money card to the airline’s frequent flyer miles program.

Aeon added 6.2 percent to ¥1,784, while Japan Airlines gained 4.3 percent to ¥265.

Elsewhere in the retail sector, department store operator Takashimaya (TYO: 8233) was 3.2 percent higher to ¥1,329 on better recommendations from Mizuho Securities and Nikko Citigroup.

Mizuho raised its recommendation from “reduce” to “hold”, while Nikko upped their rating on the retailer from “hold” to “buy”.

Elsewhere in the sector, Seven & I (TYO: 3382) was up 3.7 percent to ¥3,090 while supermarket chain Daiei (TYO: 8263; NAS: DAIEY) added 6.3 percent to ¥940.

Traders and commodities-related groups were higher after oil and metals prices rose overnight.

In the oil sector, Inpex (TYO: 1605) was up 3.4 percent to ¥1.21 million, while Nippon Mining (TYO: 5016) gained 2.1 percent to ¥1,177.

Among traders, Mitsubishi and Mitsui & Co. each added 1.4 percent, to ¥3,520 and ¥2,810 respectively.

Banks were lower, however. Mizuho (TYO: 8411; NYSE: MFG) was down 1.1 percent to ¥703,000 while Sumitomo Mitsui Financial (TYO: 8316) dropped 2.5 percent to ¥948,000.

Tokyo’s markets were higher as brokerages gained on the news that Citigroup (NYSE: C) has said it will buy out minority shareholders in Nikko Cordial (TYO: 8603; SGX: N06).

Citigroup already owns 68 percent of the brokerage.

The Nikkei 225 added 0.9 percent to 17,199.89, while the Topix index gained 1.48 percent to 1,664.01 and the Mothers market jumped 5.03 percent to 794.35.

The announcement from Citigroup sent Nikko’s shares up by the daily limit of 13.7 percent to ¥1,662.

Elsewhere in the sector, Nomura Holdings (TYO: 8604; NYSE: NMR; SGX: N33) was 4 percent higher to ¥3,090 while Daiwa Securities (TYO: 8601) gained 5.8 percent to ¥1,178.

Banks were also higher.

Mitsubishi UFJ (TYO: 8306; NYSE: MTU) was up 4 percent to ¥1,158 and Mizuho added 4.5 percent to ¥691,000.

Elsewhere, steel maker JFE (TYO: 5411) was 3.1 percent higher to ¥8,370 on the announcement that it will raise prices on steel plate by 15 percent as well as on the news that it will partner with Toshiba (TYO: 6502; LSE: TOS) to design and manufacture small and medium-sized steam turbines for power plants.

Toshiba gained 2.4 percent to ¥1,091 on the news.

In the electronics sector, Nintendo (TYO: 7974; NAS: NTDOY; FWB: NTO) added 2.7 percent to ¥1,700 but Matsushita Electric Industrial (TYO: 6752) dropped 2.5 percent to ¥2,125 after production at one of its battery factories was shut down due to a fire.

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.

Tokyo’s markets were higher on Thursday, as the Nikkei 225 had its highest close in a month and a half with a gain of 2.41 percent to 16,832.22.

The Topix index added 2.48 percent to 1,615.15 while the Mothers market was 5.52 percent higher to 720.5.

Banks were higher on rumors that investor Warren Buffett is looking to buy a stake in Bear Stearns (NYSE: BSC), boosting investor confidence that the subprime crisis will not cripple the financial services sector.

Among banks, Mizuho (TYO: 8411; NYSE: MFG) was up 4.78 percent to ¥658,000, while Resona Holdings (TYO: 8308) added 6.9 percent to ¥190,000.

Sumitomo Mitsui (TYO: 8316) gained 7 percent to ¥891,000. Regional bank Suruga Bank Ltd (TYO: 8358) was up 11 percent to ¥1,402 after it said it is talking to Japan Post about a deal.

Brokers were also higher, with Nomura Holdings (TYO: 8604; NYSE: NMR; SGX: N33) closing at ¥1,938 and Daiwa Securities (TYO: 8601) adding 8.6 percent to ¥1,114.

The consumer finance sector also saw gains after Takefuji (TYO: 8564) was reported to be preparing results showing that it will cross over into profit this year after losing ¥481.2 billion last year.

Takefuji was 16 percent higher to ¥2,155 after gaining the full amount allowed by the exchange in a session, while Aiful (TYO: 8515) and Promise (TYO: 8574) each gained 15 percent, to ¥1,909 and ¥2,850 respectively.

In the real estate sector, Deutsche Bank (FWB: DBK; NYSE: DB) raised its recommendations on both Mitsui Fudosan (TYO: 8801; NAS: MDSFF) and Sumitomo Realty & Development (TYO: 8830) from “hold” to “buy”.

Mitsui Fudosan was 7.7 percent higher to ¥3,210, while Sumitomo was up 7.9 percent to ¥4,090.

Elsewhere, Japan Tobacco (TYO: 2914) added 4.5 percent to ¥634,000 on a report out of London that it will bid on Turkey’s state-owned cigarette maker, Tekel.