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.

The slide in consumer confidence in the US hurt exporters in Tokyo, where the Nikkei 225 dropped 1.69 percent to 16,012.83 and the Topix was down 1.71 percent to 1,557.55 on Wednesday.

The Mothers market of small and mid-caps fell 2.09 percent to 716.06.

A major exception to the declines was the internet sector.

In the internet sector, price-comparison site Kakaku.Com (TYO: 2371) gained 15 percent to ¥314,000 after it said it will sell part of its travel information unit to Yahoo! Japan (TYO: 4689).

Yahoo! Japan added 4.6 percent to ¥43,450 on the announcement.

Manufacturers of motor vehicles were mixed on the session.

While Toyota Motor (TYO: 7203.T; NYSE: TM; LSE: TYT) dropped 2 percent to ¥6,530, truck maker Isuzu Motors (TYO: 7202) added 4.4 percent to ¥598 after it said it is planning to raise operating profit by expanding sales overseas.

Camera maker Canon (TYO: 7751; NYSE: CAJ) fell 2.1 percent to ¥6,400, while in Osaka game console maker Nintendo (TYO: 7974; NAS: NTDOY; FWB: NTO) was 3.7 percent lower to ¥52,000. Financial services also saw declines.

Among banks, Mitsubishi UFJ (TYO: 8306; NYSE: MTU) fell 0.9 percent to ¥1.1 million, while Sumitomo Mitusi (TYO: 8316) was down 1.3 percent to ¥890,000.

Broker Nomura Holdings (TYO: 8604; NYSE: NMR; SGX: N33) was 1.6 percent lower to ¥1,987.

The real estate sector was down 2.1 percent as a whole, while Sumitomo Realty & Development (TYO: 8830) dropped 3.3 percent to ¥3,760.

Tokyo equities markets gained slightly Monday as the Nikkei 225 added 0.32 percent to 16,301.39, the Topix index gained 0.12 percent to 1,587.76 and the Mothers market of small and mid-caps was up 0.59 percent to 731.08.

The appointment of a new Finance Minister seemed to have little effect on the markets.

In the tobacco sector, Japan Tobacco (TYO: 2914) gained 3.4 percent to ¥609,000 after it said over the weekend that it will cut costs by consolidating overseas plants.

Among internet companies, Yahoo Japan (TYO: 4689) added 3.5 percent to ¥40,000 on an upgrade to “overweight” from JP Morgan Chase (TYO: 8634; NYSE: JPM).

Carmakers also made gains, with the sector as a whole advancing by 0.8 percent.

Toyota Motor (TYO: 7203.T; NYSE: TM; LSE: TYT) was up 0.6 percent to ¥6,700, while Honda Motor (TYO: 7267; NYSE: HMC) added 2.4 percent to ¥3,790.

Banks did not do as well. Sumitomo Mitsui (TYO: 8316) dropped 0.9 percent to ¥919,000, while Resona Holdings was down 1.3 percent to ¥237,000 after both banks had gains of over 2 percent earlier in the session.

In Tokyo on Thursday, the Nikkei 225 dropped 0.3 percent to close at 17,485.30 as the yen strengthened after recent weakness. The decline came after the index achieved another six-year high early in the session. Despite this, many analysts believe that advances will be limited this year due to shares that they believe are too highly valued at present.

Some export-focused stocks were hurt by the currency’s gains. Printer and copier maker Canon fell 1.2 percent to ¥6,530. But not all exporters declined on the session. Helped by good results in tech stocks in the US, Sony added 1.6 percent to ¥5,720.

There were gains in the pharmaceuticals sector. Chugai Pharmaceutical added 6.5 percent to ¥2,715 after it announced, along with partner Roche, that studies for its new rheumatoid arthritis drug were proceeding well.

Shipper were higher after positive comments from Mizuho Securities. Mitsui OSK Lines was 1.1 percent higher to ¥1,264, while Kawasaki Kisen gained 1.15 percent to ¥1,053.

Yahoo Japan, up 1.05 percent to ¥48,250, reported that its quarterly profits were up by 20 percent.

The real estate sector, which has added more than 40 percent since last July, continued to rise even though some analysts believe that stocks are currently overvalued. Mitsui Fudosan added 1.6 percent on the session to ¥3,100.

The Tokyo equities markets were lower on Wednesday, with both export-focused and domestic stocks seeing declines. The Nikkei 225 dropped 1 percent to 15,718.67, while the Topix index was 1.4 percent lower to 1,570.28. The Mothers index of small and mid-cap stocks declined even further, by 3.2 percent to 1,178.78.

Internet-related stocks were sent lower by a profit warning issued by Yahoo in the United States. Both Yahoo Japan and Softbank dropped 3 percent, to ¥40,200 and ¥2,075.

Among domestic stocks, real estate, banks, insurance, and consumer finance were all lower. Real estate was 2.1 percent lower as a sector on fears that shares are overvalued. Mitsui Fudosan was 2.3 percent lower to ¥2,610, while Mitsubishi Estate fell 2.9 percent to ¥2,500.

The banking sector was down even more sharply, losing 2.4 percent overall. Mitsubishi UFJ dropped 2 percent to ¥1,450,000. But banks were outdone by the insurance sector, which declined by 2.7 percent as a whole. Life insurer T&D matched the sector with fall of 2.7 percent to ¥8,360, while general insurer Sompo Japan was 4.3 percent lower to ¥1,465.

Consumer finance companies were lower on continuing worries about how the new cap on interest rates they can charge customers will affect business. Takefuji dropped 2.3 percent to ¥5,830, while Aiful declined 4 percent to ¥4,580.

Equities markets in Tokyo were down significantly on Wednesday as both export-focused and domestic sectors saw declines on the day. The Nikkei 225 was down 1.5 percent to 15,964.46, while the Topix index also dropped 1.5 percent, to 1,635.60.

Among companies that depend on exports, Sony declined by 1.6 percent to ¥5,440 and high-tech manufacturer Ibiden fell 4.9 percent to ¥5,250. Carmaker Toyota was 1.6 percent lower, trading at ¥6,150.

Domestically, retailers were down 1.8 percent as a whole. Holding company Seven & I, which operates convenience stores and department stores, was down 2.1 percent to ¥4,680 when it cut 2006 profit forecasts by 25 percent.

The securities sector dropped 2.1 percent, with Nomura falling 1.8 percent to ¥2,205. Nikko Cordial was down 2.5 percent to ¥1,816.

Shares related to internet companies were down after Google’s announcement that its growth was beginning to slow down. Yahoo Japan declined by 2.9 percent to ¥134,000, while Softbank dropped 4.9 percent to ¥3,460.