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.

In Tokyo on Wednesday both the Nikkei 225 and the Topix index closed at their lowest level this year.

The Nikkei was down 2.2 percent to 16,475.61, while the Topix dropped 2.6 percent to 1,594.15.

The Mothers market fell 2.66 percent to 751.69.

While Japan’s finance minister said that the problems in the US subprime market “seems to have past its peak”, banks were still lower after Mitsubishi UFJ (TYO: 8306; NYSE: MTU) and Sumitomo Mitsui (TYO: 8316) reported losses involving mortgage-related securities.

Mitsubishi UFJ was 5.3 percent lower to ¥1.08 million after it said its unrealized subprime-related losses amounted to ¥5 billion, while Sumitomo Mitsui was down 5.9 percent to ¥920,000 after reporting that it had lost “billions” of yen in the quarter ending 30 June after it sold ¥350 billion in mortgage-backed securities.

In addition, Orix Corp (TYO: 8591), Japan’s largest non-bank lender dropped 6.6 percent to ¥23,340 even though the company’s president said that it is not exposed to the US subprime market.

Exporters were hurt by a strengthening yen.

Honda Motor (TYO: 7267; NYSE: HMC) was down 2,7 percent to ¥3,920, while Toyota Motor (TYO: 7203.T; NYSE: TM; LSE: TYT) fell 3 percent to ¥6,850.

Construction equipment manufacturer Komatsu (TYO: 6301) dropped 3.9 percent to ¥3,410.

In the electronics sector, Sony (TYO: 6758; NYSE: SNE) was 2.7 percent lower to ¥5,520, while Matsushita (TYO: 6572; NYSE: MC) was down 5 percent to ¥2,015 after mobile phone maker Nokia (OMX: NOK1V; NYSE: NOK; FWB: NOA3) said it would replace Matsushita-manufactured batteries that ran a risk of overheating during recharging.

In the retail sector, Seiyu Ltd (TYO: 8268) - Wal-Mart’s Japanese unit - was 10 percent lower to ¥114 after saying it will post its fifth annual loss in a row, likely in the neighborhood of ¥5.9 billion.

Tokyo Electric Power (TYO; 9501) fell 2.9 percent to ¥3,030 even though the International Atomic Energy Agency reported that an inspection showed that damages from last month’s earthquake looked to be less than had been anticipated.