Equities markets in Tokyo were lower on Wednesday as investors worried over the state of the US economy. The Nikkei 225 dropped 0.5 percent to 16,764.62, while the Topix index fell 0.2 percent to 1,689.60. The Mothers market of small and mid-caps was 1.2 percent lower to 1,036.58.

Export-focused stocks, which are generally more affected when investors are concerned about economic conditions in the US, were mixed. Carmaker Toyota (TYO: 7203.T; NYSE: TM; LSE: TYT) added 0.3 percent to ¥7,740. On the other hand, camera and office machinery maker Canon (TYO: 7739) dropped 2.4 percent to ¥6,070. Consumer electronics manufacturer Matsushita Electric Industrial (TYO: 6752; NYSE: MC) was 0.4 percent lower to ¥2,295.

The crackdown on interest charges in the consumer finance sector hurt Orient (TYO: 8585) after it blamed a larger than expected net loss in the year to March on having had to repay interest charges which were judged to be illegally high. The consumer lender fell 13.6 percent to ¥146.

Elsewhere in financial sectors, trouble broker Nikko Cordial (TYO: 8603; SGX: N06) added 1.3 percent to ¥1,357 on news of a bid from Citigroup (NYSE: C).

The real estate sector added 2.5 percent as a whole, with Mitsui Fudosan (TYO: 8801; NAS: MDSFF) up 3.5 percent to ¥3,270.

Retailer Aeon (TYO: 8267) dropped 3 percent to ¥2,300 after a lowered estimate of operating profits through March as a mild winter cut sales of seasonal products.

Retail sectors advanced in Tokyo on Thursday after new gross domestic product figures showed that the Japanese economy grew at an annualized rate of 4.8 percent in the last quarter of 2006, above expectations of 3.8 percent growth for the quarter. It is widely expected that the Bank of Japan will use the new report as an excuse to hike interest rates when it next meets. The Nikkei 225 added 0.81 percent to 17,897.23, its highest close since May 2000. The Topix index gained 0.65 percent to 1,776.71.

Department stores and general retail both were helped by the new data. Among department stores, Marui added 7.28 percent to ¥1,533, while Mitsukoshi gained 7.75 percent to ¥584. Takashimaya was 10.03 percent higher to ¥1,690. Japan’s largest general retailer, Seven & I Holdings, was up 4.75 percent to ¥3,750.

The consumer finance sector, on the other hand, declined. Orient dropped 19.41 percent to ¥191 after it said it expects to incur losses for the current fiscal year. It blamed new, more stringent government rules on how much interest lenders can charger their customers for the anticipated narrowing of margins. Acom dropped 0.88 percent on the session, to ¥4,480.