The Tokyo equities markets bounced back from Monday’s sell-offs to end the session higher on Tuesday. The Nikkei 225 closed up 0.4 percent to 17,406.86, while the Topix index was 0.9 percent higher to 1,732.42.

As the yen weakened late in the day, export-focused stocks saw gains. In the automobile manufacturing sector, Nissan Motor added 0.3 percent to ¥1,387 after steep declines on Monday. Toyota Motor was 1.8 percent higher to ¥7,960, while Honda Motor gained 2 percent to ¥4,620.

In the electronics sector, Canon added 1.3 percent to ¥6,230. Sony was 2.5 percent higher to ¥5,840. Meanwhile, camera manufacturers were helped not only by the weakness of the yen but by the shift to digital cameras. Nikon and Olympus both had significant gains in the last quarter of 2006 and both upped their full-year expectations. Olympus added 3.9 percent on the session to ¥4,050, while Nikon gained 5.4 percent to ¥2,750.

Even Nikko Cordial saw a gain of 1.9 percent to ¥1,175 after it was revealed that US investment house Harris Associates had acquired a 5 percent stake in Nikko.

The banking sector was lower after Goldman Sachs downgraded the entire sector from “attractive” to “neutral”. Mitsubishi UJF dropped 0.7 percent to ¥1.41 million.

Gains in domestic stocks sent the Nikkei 225 to its highest closing level in three months on Tuesday after new data showed that Japan’s birth rate, which has been dropping, has begun to rise again. The Nikkei 225 added 1.3 percent to 16,181.17, while the Topix index was 1.1 percent higher to 1,641.77.

The birth rate news helped manufacturers and sellers of baby goods. Baby goods and clothing retailer Nishimatsuya added 3.6 percent to ¥2,180, while Wakodo, which makes baby food, gained 5.5 percent to ¥4,960. With the number of weddings also growing, wedding ceremonies planner Take and Give Needs was 3.3 percent higher.

Real estate and securities were also higher on the day, as higher birth rates indicate stronger demand to come. Mitsui Fudosan gained 2.6 percent to ¥2,585 as the real estate sector as a whole was 2.1 percent higher. The securities sector was up by 2.8 percent, as Nomura added 3 percent to ¥2,265 and Daiwa was up 3.2 percent to ¥1,436.

The oil sector also saw gains after Monday’s rise in crude oil prices. Oil and gas exploration group Inpex Holdings was 1.9 percent higher to ¥1,060,000, while oil distributor Nippon Oil added 2.8 percent to ¥945.

Exporters also saw gains on the day, with carmaker Toyota adding 1.1 percent to ¥6,440 and camera manufacturer Olympus gaining 4.4 percent to ¥3,340.

Equities markets in Tokyo were down on Tuesday on a general weakness in shares in both domestically focused and export-dependent sectors, as well as on uneasiness ahead of any announcement from the Bank of Japan‘s meeting on Thursday. The Nikkei 225 closed down by 1.1 percent to 15,726.02, while the Topix index dropped 0.5 percent to 1,617.87.

Real estate was down 1.8 percent as a sector, with Mitsui Fudosan dropping 1 percent to ¥2,410 and Mitsubishi Estate down 1.6 percent to ¥2,415.

The retail sector dropped 0.6 percent, as did banking. In retail, Seven and I lost 0.4 percent to ¥4,480. Banker Mitsubishi UFJ declined by 0.6 percent to ¥1,670,000.

Electric utilities were down, as well. Tokyo Electric Power dropped 2.2 percent to ¥3,090 when Merrill Lynch downgraded it from “buy” to “neutral”. Kansai Electric lost 2 percent to ¥2,730.

The precision machinery sector as a whole was down 1.1 percent, with Olympus dropping 2.2 percent.

Softbank was down 8.5 percent to ¥3,140 when Standard & Poor’s put it on credit watch on the news that Softbank is in discussions toward purchasing UK telecommunications company Vodafone, which S&P sees as potentially putting too great a financial burden on Softbank.

Bucking the negative trend, automobile manufacturer Suzuki gained 3 percent to ¥2,565 on the news that General Motors will sell most of its stake in Suzuki.