The Tokyo equities markets saw declines on Wednesday as post-election elation gave way to profit taking and worries about the state of the US economy. The Nikkei 225 fell 0.5 percent to 12,834.25, while the Topix index dropped 0.3 percent to 1,212.35.

Some export-dependent stocks fell. Sony declined by 1.7 percent to ¥3,980. Toyota fell by 0.4 percent to ¥4,700 as the transport equipment sector as a whole was down by 0.3 percent.

Still, shares in domestic companies felt the brunt of the profit-taking on the day, with the insurance, securities, and banking sectors all down. Insurer Sompo Japan fell 4 percent to ¥1,372 as the insurance sector as a whole dropped 1.8 percent.

The securities sector was down 0.7 as securities house Nomura declined by 0.9 percent to ¥1,521. Japan’s biggest banking group, Mizuho, was down 0.5 percent to ¥637,000, while the sector as a whole lost 0.8 percent. Real estate group Fudosan was also down, losing 1.6 percent to ¥1,599. There were gains on the day, however.

Square Enix, the videogame maker was up 2 percent to ¥3,130 on an initial “outperform” rating from Credit Suisse First Boston. Additionally Yakult, a company that makes fermented lactic drinks as well as drugs and cosmetics, gained 4.9 percent to ¥2,580 on an upgraded rating from Mizuho Securities.

The Tokyo equities markets saw declines on Wednesday as post-election elation gave way to profit taking and worries about the state of the US economy. The Nikkei 225 fell 0.5 percent to 12,834.25, while the Topix index dropped 0.3 percent to 1,212.35.

Some export-dependent stocks fell. Sony declined by 1.7 percent to ¥3,980. Toyota fell by 0.4 percent to ¥4,700 as the transport equipment sector as a whole was down by 0.3 percent.

Still, shares in domestic companies felt the brunt of the profit-taking on the day, with the insurance, securities, and banking sectors all down. Insurer Sompo Japan fell 4 percent to ¥1,372 as the insurance sector as a whole dropped 1.8 percent.

The securities sector was down 0.7 as securities house Nomura declined by 0.9 percent to ¥1,521. Japan’s biggest banking group, Mizuho, was down 0.5 percent to ¥637,000, while the sector as a whole lost 0.8 percent. Real estate group Fudosan was also down, losing 1.6 percent to ¥1,599. There were gains on the day, however.

Square Enix, the videogame maker was up 2 percent to ¥3,130 on an initial “outperform” rating from Credit Suisse First Boston. Additionally Yakult, a company that makes fermented lactic drinks as well as drugs and cosmetics, gained 4.9 percent to ¥2,580 on an upgraded rating from Mizuho Securities.

European equities markets were up on Friday, ending the week up as well. The FTSE Eurofirst 300 gained 0.3 percent on the day to 1,207.0, bringing its gains for the week to 1.9 percent. Meanwhile, German’s Xetra Dax index closed above 5,000 for the first time since May 2002.

Utilities were in the news during the week. Endsea was the recipient of an unsolicited takeover bid from Gas Natural, which it rebuffed, gaining 9.6 percent over the week in the process to close the week at €20.35. Gas Natural lost 3 percent to €23.80.

Meanwhile, Eon said it was thinking about bidding for Scottish Power, sending its shares up 0.6 percent to €79.31. Iberdrola, Spain’s second-biggest electricity company, was up 5.5 percent to €22.24 and the third-largest electricity supplier in Spain, Union Fenosa, gained 8.6 percent to €25.98.

There were takeover rumors in the banking sector as well, as there was talk that a group of Saudi investors was thinking about trying for German bank HVB group and that Allianz was considering selling its investment banking unit, Dresdner Kleinwort Wasserstein. HVB rose by 1.2 percent to €23.65, while Allianz gained 5.5 percent to €109.07.

The banking sector also saw gains elsewhere. Deutsche Bank was up 8.1 percent to €77.21, UBS gained 4.2 percent to SFr107.50, and Credit Agricole added 8.6 percent to €23.48.

Both the Nikkei and Topix indices were down in Tokyo on Thursday as investors expressed worry over uncertainty about the outcome of Sunday’s election by selling shares in companies that are domestically focused.

Although stocks are still up from their levels at the time elections were called, the past few days have seen declines as the election comes closer. According to analysts, the concerns revolve around the possibility that no party will gain a majority in the election, making it harder to agree on economic policy, which could be bad for equities. On the other hand, a clear victory for Prime Minister Junichiro Koizumi’s Liberal Democrats could spell an advantage for equities.

The Nikkei 225 fell 0.6 percent to 12,533.89 and the Topix index was down 0.5 percent to 1,278.90.

The banking sector managed to stay even on the day as data released by the Bank of Japan showed a rise in bank lending, the first such rise since records began seven years ago.

The real estate sector, however, fell 0.9 percent, while the securities sector also declined by 0.9 percent and wholesalers dropped 1 percent. The largest real estate company and the largest securities house in Japan each lost 1.1 percent on the day as real estate company Mitsui Fudostan ended the session at ¥1,489 and securities firm Nomura closed the day at ¥1,468.

Mayonnaise and salad dressing maker QP ended the day on a high note, gaining 3 percent to ¥992 after Daiwa Research Institute raised its rating from “3” to “2” and said the company would reach record high operating profits in the 2007-2008 fiscal year.

In Europe on Wednesday, the FTSE Eurofirst 300 gained 0.3 percent to 1,205.03, its highest close in over three years, helped along by strength in the financial sectors.

Credit Agricole, France’s largest retail bank, gained 6 percent to €23.74 when its report that net profits were up by 23 percent, much more than had been expected.

The news prompted several agencies, including Deutsche Bank, WestLB, and Dresdner Kleinwort Wasserstein, to upgrade the stock Deutsche Bank also upgraded and increased its target price for UBS and Credit Suisse and also increased Commerzbank’s price target.

Commerzbank gained 2.4 percent to €22.21, while Credit Suisse also was up 2.4 percent, to SFr57.60 and UBS added 1.7 percent to SFr106.90.

Among reinsurers, UBS and Credit Suisse First Boston both upgraded Swiss Re, sending its stock up 2.4 percent to SFr82.50. Gains were also seen in technology sector, with STMicroelectronics up by 4.7 percent to €13.94, while Infineon gained 1.7 percent to €7.85, and ASML advanced by 0.9 percent to €13.76. There were some losers on the day. Accor, the hotels group, lost 2.7 percent to *42.33.

IT services group Atos Origin was down 2.4 percent to €59.75 even though its first half profits were up by 11 percent as it did not increase its full-year prediction. Brewer Heineken fell 0.5 percent to €26.87.

Following the lead of the London equities markets on Tuesday, the FTSE Eurofirst 300 gained 0.9 percent to 1,201.09 on the strength of gains in the utilities sector. It was the Eurofirst’s highest close since May 2002.

Spain’s largest electricity generator, Endsea, gained 8.1 percent to €20.63 while its board met to consider an offer from the smaller gas distributor and wholesaler, Gas Natural. At a worth of €22.55 billion, if the deal goes through it would be the largest European merger this year. However, Natural Gas lost 1.8 percent to €23.34 when BNP Paribas called the deal “not very attractive” and downgraded the Barcelona-based company to “under perform”.

Elsewhere in the sector, Iberdrola, Endsea’s largest competitor, was up 3.5 percent to €22.27 and Union Fenosa, a smaller Spanish utility, added 1.2 percent to €25.48. Germany’s Eon gained 0.2 percent to €80.80 on the rumor that it might bid for UK utility Scottish Power. Elsewhere, the banking sector also saw gains. Deutsche Bank gained 4.8 percent to €76.14, its highest level in a year and a half, as Merrill Lynch upgraded it to “buy”. Spanish bank BBVA, also upgraded to “buy” by Merrill Lynch, added 1.2 percent to €13.97.

Meanwhile, ABN was up 1.3 percent to €19.71, while Lloyds TSB gained 1.6 percent on the day. In the insurance sector, French company AXA gained 2.3 percent to €22.14 as in announced a more-than-expected rise in profits for the half-year and said it was still on track to have strong earnings in 2005 in spite of Hurricane Katrina.

In the Tokyo equities markets on Friday, the Nikkei 225 closed at another four-year record high, gaining 0.7 percent to 12,600.00, while the Topix index was up 0.4 percent to 1,282.79.

Real estate and retailing led the gains, with sector-wide gains of 1.2 and 1.3 percent respectively. Real estate was still benefiting from news that housing starts in Japan were at a seven-year high, while retailers saw gains due to announcements by individual companies.

In the real estate sector, developer Mitsui Fudosan gained 0.6 percent to ¥1,455, while Mitsubishi Estate was up 1.2 percent to ¥1,374.

In the retail sector, Seven & I Holdings, Asia’s largest retailer, announced that it will take full ownership of its US subsidiary 7-Eleven, gaining 4.8 percent to ¥3,520. In addition, supermarket chain operator Uny added 0.85 percent to ¥1,312 on the news that its annual net profit nearly tripled due in large part to debt forgiveness.

On the other hand, the banking sector fell by 0.7 percent on rumors that regulators want to make it simpler for the government to sell preferred shares in large banks for common stock.

The London equities markets closed down slightly for the day on Friday but was up substantially on the week, mostly on the strength of mergers and acquisitions rumors.

The FTSE 100 ended the day down fractionally to 5,326.8, but gained 1.9 percent over the course of the week. The FTSE 250 also dropped fractionally on the day to, to 7,792.3, but was up by 1.2 percent for the week.

The biggest winner was chemicals company BOC, which gained 4.1 percent to £11.28 on the day after it was rumored that it was in talks with German company Linde, while similar talk that it was also talking to BASF were dismissed. Also in the chemicals sector, ICI gained 1.5 percent to 296¼p.

The Germans, specifically E.ON, were also said to be interested in Scottish Power, which gained 2.5 percent to 525p on the talk.

Pilkington gained 5.2 percent to 139½p on continuing talk that Nippon Sheet Glass, which already owns 20 percent of Pilkington, could purchase the rest of the company, but not everyone was buying the rumors, which some analysts say make the rounds on a regular basis.

In the banking sector, Lloyds TSB gained 1.5 percent to 465½p on the assumption that it is the most logical target if any US or European banks are looking to make a purchase in the UK. Elsewhere in the sector, Royal Bank of Scotland was down 0.8 percent to £16.17.

The Tokyo equities markets did better on Tuesday as they gained back the ground that they lost on Monday. The Nikkei 225 gained 1.2 percent to 12,453.14 and the Topix index was up by 1.2 percent as well, to 1,273.60.

The iron and steel sector did well, gaining 3.9 percent, while the shipping sector gained 1.5 percent. Nippon Steel gained 5.2 percent to ¥321, while JFE added 4.6 percent to ¥3,200. Shipper Nippon Yusen was up 1.5 percent to ¥696.

The transport equipment sector as a whole gained 1.3 percent, and Toyota, one of Japan’s biggest exporters and the second largest automobile manufacturer in the world, was up by 2.2 percent to ¥4,550.

In the pharmaceuticals sector, Eisai was up 1.2 percent to ¥4,160 after an announcement on Monday that it was ready to take its experimental drug aimed at treating sepsis to the next level of testing.

The financial sector also did well. Banking group Mizuho gained 4 percent to ¥619,000, while securities house Nomura added 2.2 percent to ¥1,521.

On the losing side, supermarket chain Eco lost 5.7 percent to ¥1,084 when it said it would probably take losses in the first half of the 2005-2006 fiscal year due to low sales, which it blamed on heavy competition.

The London equities markets ended both the day Friday and the week mixed as investors worried that interest rates might be about to rise due to an increase in inflation brought on by higher oil prices.

The FTSE 100 closed at 5,228.1 on Friday, down 0.5 percent on the day and 1.6 percent lower for the week. The FTSE 250, however, gained 0.3 percent for the day and 0.5 percent for the week to close at 7,700.5.

Trade volumes were low at only 2 billion shares traded on the day. The slow trade was put to the upcoming bank holiday; traditionally, this is one of the quietest times of year on the exchanges.

With little news of substance, rumors concerning possible takeovers drew extra attention.

On Friday such rumors sent shares in Imperial Tobacco up a bit, rising 0.1 percent to £15.36. All it took to start the rumors were comments from Japan Tobacco that it might be interested in acquiring European rivals.

During the week Centrica, Lloyds TSB, and Rentokil were all the subject of takeover rumors of one sort or another.

Lloyds saw its shares fall in value by 0.1 percent to 457½p on Friday as analysts cast doubt on rumors that US bank Wells Fargo was interested in the bank.

Meanwhile, leisure group Hilton gained 2 percent to 310p as Goldman Sachs raised its pre-tax profits prediction for the company by 2 percent to £420.8 million. Hilton was also helped by an increase in its target price by UBS from 340p to 355p.

Japanese equity markets were down on Thursday as investors manifested concerns about high oil prices and the recent strong gains in shares of companies dependent on domestic demand.

The Nikkei 225 was down 0.8 percent to 12,405,16, while the Topix index fell by 0.6 percent to 1,268.06. Sectors that do most of their business domestically fell the most on the day.

Banking was down 2.05 percent and real estate fell 1.5 percent, while services were down 0.95 percent and securities declined by 1.1 percent.

One of Japan’s largest securities firms, Daiwa Securities, were down 1.9 percent to ¥733. However, Japan’s largest securities company, Nomura, did go up by 0.4 percent to ¥1,515.

In the real estate sector, developer Mitsui Fudosan lost 2.2 percent to ¥1,406.

Shoe wholesaler and retailer ABC Mart was up by 11.4 percent to ¥4,879 on stronger than expected sales and an increase in its forecast of net profits.

Toymakers Takara and Tomy, which will merge next year, were both up, by 8.8 percent and 6.6 percent respectively.

In London equities markets on Thursday, the indexes were lower as crude oil prices rose once again.

The FTSE 200 dropped 0.4 percent to 5,255.7 and the FTSE 250 was down by 0.3 percent to 7,679.1 on a volume of 2.5 billion shares traded. Shares in companies that rely heavily on oil products were down.

British Airways fell 1.8 percent to 279 ½ p, while cruise operator Carnival lost 1 percent to £29.40.

Lloyds TSB traded nearly 70 million shares and was up by 4 percent at one point on the day as rumors floated that US bank Wells Fargo would acquire Lloyds, although Wells Fargo has not shown any inclination to acquire European banks. Lloyds ended the day up by 0.9 percent to 458¼p.

Also in the banking sector, the Royal Bank of Scotland lost 1.4 percent to £16.21 after ABN Amro repeated its rating of “reduce” on the bank.

In the leisure sector, Hilton declined by 2.3 percent to 298½p on the news that its Ladbrokes betting shops had sustained a recent series of bad results. In addition, Hilton reported that its hotels have seen falling demand, largely as a result of the July terrorist bombings in London. Still, the company’s interim profits were up.

Steelmaker Corus Group lost 1 percent to 44¼p despite higher interim profits, as it warned that third-quarter profits would be impacted by higher costs for raw materials and lower prices on its products.

The Tokyo equities exchanges were down Wednesday morning amid profit-taking after earlier gains.

The Nikkei 225 fell 0.24 percent to 12,441.31, while the Topix index lost 0.35 percent to 1,267.59.

The steel sector as a whole lost 0.9 percent, and Nippon Steel lost 1.3 percent to ¥310.

Other sectors that saw losses included the insurance sector, down by 1.5 percent, the securities sector, which lost 1.2 percent, and the real estate sector, which declined by 1.1 percent.

The banking sector, which was a victim of profit taking before the other sectors, only fell by 0.3 percent.

There were sectors that saw gains, including retailers, which gained 0.1 percent, and the sea transport sector, which was up by 0.7 percent.

In the shipping sector, Mitsui OSK Lines gained 1 percent to ¥822 on a positive share outlook from UBS.

Camera maker Nikon lost 2.1 percent to ¥1,340 when Merrill Lynch lowered its rating from “buy” to “neutral”, saying that the company has neared its share price target and it cannot see any reason to raise that target.

Meanwhile, discount chain retailer Aoyama Trading gained 0.2 percent to ¥2,940 on the Osaka equities exchange.

Morning trading on the Tokyo equities markets sent stocks higher, so that by midday, the Nikkei 225 had risen by 0.9 percent to 12,569.99, while the Topix index had gained 0.8 percent to 1,280.36.

The gains were seen in many sectors. Advertiser Dentsu, Japan’s biggest, added 3.2 percent to ¥288,000 even thought it announced an 11 percent decline in its quarterly operating profit on Monday.

The steel sector was also up. Tokyo Steel Manufacturing gained 2.6 percent to ¥1,676 as it announced price increases for September, while Nippon Steel was up 1.3 percent to ¥318.

Video game maker Square Enix added 3.5 percent to ¥3,100 on the announcement that it would bid for game machine manufacturer Taito. Taito’s shares were up by 12.4 percent to ¥181,000 on the news.

In other sectors, camera and copier maker Canon was up 1.4 percent to ¥5,650, securities firm Nomura gained 2.2 percent to ¥1,539, and supermarket chain Ito-Yokado added 4.5 percent to ¥4,150.

The banking sector, however, saw losses as Mizuho declined by 0.2 percent to ¥594,000.

Japanese equities markets were up on Monday morning, as the Nikkei 225 gained 0.8 percent to 12,390.66 and the Topix index rose by 0.9 percent to 1,261.21 on continuing optimism about the direction of the economy and as investors bought into domestically-oriented companies.

Sanrio, the maker of the Hello Kitty brand was up 3.5 percent to ¥1,182 on a positive quarterly earnings report.

The oil sector advanced on higher crude oil prices but those same high prices did not seem to bother companies that use a lot of oil. Nippon Oil, Japan’s largest distributor of oil, gained 1.1 percent to ¥858, which Japan’s largest shipper, Nippon Yusen, gained 0.6 percent. The sea transport sector as a whole was up 1.4 percent, and stocks in air transport companies gained 0.7 percent.

Banking, insurance, and real estate were also up, with the banking sector as a whole up 2.4 percent, while real estate and insurance each rose by 1.2 percent.

Online broker Monex Beans added 3.9 percent to ¥133,000. Japan’s largest banking group, Mizuho, gained 3.6 percent to ¥580,000, and insurer NipponKoa was up by 1 percent to ¥793.

Uncertainties about high oil prices that are affecting consumer prices in the US sent equities markets in Tokyo down on Wednesday.

The Nikkei 225 was down 0.3 percent at the close to 12,272.12, while the Topix fell 0.2 percent to 1,250.10.

During the recent rise in oil prices, most analysts have de-emphasized the possible effect of the hikes on the Japanese economy on the theory that Japan uses much less energy than other developed nations.

Now, however, it is not just export-dependent companies that are being affected by higher oil prices. With Japanese gasoline prices hitting a 12-year high recently, there is some worry that domestic demand in other sectors will be affected.

On this worry, both retailers and the real estate sector fell by 0.4 percent on the day. Leading supermarket chain Ito-Yokado lost 1 percent to ¥3,970.

The banking sector was up, however, on continuing general optimism about the recovery of the Japanese economy even though Goldman Sachs said on Tuesday that it might lower the sector’s rating to “underweight”. Banking group Mizuho gained 0.7 percent to ¥547.000.

In London on Wednesday, the equities markets saw their fifth day in a row of negative figures at the close of trade as the Bank of England released the minutes from the most recent meeting of the Bank of England’s monetary policy committee.

The banking and insurance sectors took the implication of the report, that there would not be another interest rate cut soon, especially badly. Overall, the FTSE 100 lost 0.6 percent to close at 5,292.7, while the FTSE 250 declined by 0.6 percent as well, to 7,654.5 at the close. In banking and insurance, Royal Sun Alliance was down 2.3 percent to 94 ¼p, Barclays lost 2.1 percent to 563p, Aviva declined by 2.4 percent to 621 ½p, and Prudential fell 1.7 percent to 514 ½p.

The telecommunications sector did somewhat better as Vodafone gained 0.7 percent to 151 p, BT added 1.8 percent to 220 ¾p, O2 added 2.8 percent to 146 ¾p, and Colt-Telecom gained 3.7 percent to 62 ½p.

The airline sector was mixed. British Airways fell 2 percent to 385 ¾p as its labor dispute continued. EasyJet, however, was up 1.3 percent to 299p after it announced it would save £10 million for the year as a result of a 10-year maintenance deal with Swiss firm SR Technics worth $1 billion.

Mining companies were down for the second day in a row as copper prices continued to fall. BHP Billiton lost 2.9 percent to 813p, Anglo American declined by 2.8 percent to £14.11, Rio Tinto fell 2.6 percent to £19.85, while Antofagasta dropped 1.8 percent to £14.04.

In Japan on Tuesday both the Nikkei and Topix indices reached 4-year closing highs as optimism about economic recovery continues. Even a damaging earthquake in the northern part of Honshu did not cause much disruption. The Nikkei 225 was up 0.5 percent to 12,315.67, while the Topix index gained 0.3 percent to 1,252.12.

Companies that deal with commodities were down on profit-taking after gains in the prices of oil and copper. Nippon Oil was down 0.7 percent to ¥878, while Nippon Mining, which has interest in both copper mining and oil, fell by 1.6 percent to ¥728.

Banking was also down. Japan’s largest banking group, Mizuho, closed down 1.4 percent at ¥543,000.

The steel sector was up, with Nippon Steel gaining 1.3 percent to ¥305 and Tokyo Steel Manufacturing added 1.5 percent to ¥1,498. Gains in the steel sector had to do with the announcement on Monday that Nippon Steel is planning on buying new equipment to deal with higher demand.

Aerial photography survey company Pasco was up 13 percent to ¥305 after Tuesday’s earthquake and the announcement that Pasco will launch a computer-based map service in September.

Robot-maker Fanuc gained 4.6 percent to ¥8,220 after securities firm CLSA said that the company benefited from higher robot orders from North America in the first half of the year.

European equities markets ended the day relatively even as the FTSE Eurofirst 300 closed at 1,192.46 as a number of markets were closed for the observance of Assumption Day.

In the banking sector, Commerzbank lost some of its recent gains on the news that its chief executive has come under investigation in an ongoing money laundering inquiry involving the bank, losing 0.8 percent to €20.93.

The automobile manufacturing sector was down on the day as well, as BMW fell by 0.9 percent to €36.42 and Peugeot lost 0.8 percent to €51.90. Michelin was down 0.9 percent to €51.40. In the chemicals sector, Bayer lost 1 percent to €29.36 and specialty chemicals group Clariant declined by 0.8 percent to SFr18.70.

The largest pharmaceuticals wholesaler in Europe, Celesio, lost 2.9 percent to €69.01 on profit-taking after recent gains. In mergers and acquisitions, Philips Electronics was up 0.6 percent to €21.64 after it announced that it would pay around €765 million to buy a 47 percent stake in LED company Lumileds from Agilent Technologies. Philips also announced that it would buy back around €1.5 billion of its own shares in the next year.

In Europe on Friday, the FTSE Eurofirst 500 fell by 0.3 percent to 1,192.75, but it still managed to post a gain of 1.6 percent on the week and reached its highest level since May 2002 on Wednesday.

Oil stocks were some of the biggest performers of the week, riding rising oil prices to their gains. Neste Oil gained 8.5 percent on the week to €25, while OMV added 5.8 percent to €40.75.

The best performer of the week, however, was in the utilities sector, as Suez gained 12 percent for the week to €24.59 as it announced that it would buy out the portion of Electrabel, the Belgian electricity supplier, that it does not already own.

Electrabel saw a gain of 7 percent to €415.60 on the news even though the cash-and-shares deal will have to gain support from both shareholders and the government in Belgium.

Another big winner on the week was Commerzbank, Germany’s third largest bank, on rumors that both Santander Central Hispano in Spain and BNP Paribas are both interested in bidding for the bank. Even though neither institution would confirm such plans, Commerzbank still gained 7.2 percent to €21.09 on the week.

The Tokyo equities markets were mixed on very little movement on Friday, as the Nikkei 225 closed down just 0.1 percent to 12,261.68 and the Topic gained 0.11 percent to close at 1,245.13.

The volume of shares traded hit a comparatively high 1.9 billion shares. Advances in the financial sector were balanced by losses by exporters and oil-related companies. The banking and securities sectors both saw gains on the day.

Equities broker Nomura Securities was up 1 percent to ¥1,475, while Nikko Cordial led gains in the sector when it added 1.3 percent to ¥549.

In the banking sector, Sumitomo Mitsui Financial group gained 3.1 percent to ¥837,000, MTFG was up 2 percent to ¥1,030,000, and Mizuho Financial Group gained 1.5 percent to ¥539,000.

Exporters, however, fell on the day. Honda and Canon, both of which sell nearly 75 percent of their goods in foreign markets, both lost 0.5 percent on the day, with Honda closing at ¥5,750 and Canon finishing up the day at ¥5,470. Sony, also highly dependent on foreign sales, lost 1.8 percent to ¥3,370.

In the oil sector, profit taking sent shares down and the sector as a whole lost 0.5 percent on the day. Inpex, the oil and gas explorer lost 2.9 percent on Friday to ¥826,000 after gains of 12 percent over the past two days.

In Tokyo on Thursday, the equities markets closed at four-year highs on continuing indications that the economy was continuing its recovery.

The Nikkei and Topix indexes were both higher for the fourth day in a row as the Nikkei 225 ended the session up 1.37 percent at 12,226.32 and the Topix added 1.29 percent to 1,243.74.

Insurance, banks, and securities brokers were all up on the day. The insurance sub-index on the Tokyo Stock Exchange gained 6.3 percent as Mitsui Sumitomo Insurance gained 8.8 percent to ¥1,147 on strong income in their first quarter.

Sompo Japan added 8 percent to ¥1,210 and Nippon Koa was up 3.3 percent to ¥777. All saw strong interest from foreign investors.

The banking sub-index saw a 3.7 percent rise on the day. SMFG was up 6.6 percent to ¥812,000, MTFG gained 3.5 percent to ¥1,010,000, while Mizuho Financial Group added 3.1 percent to ¥531,000.

The securities sub-index was up 3.7 percent. Diawa Securities gained 1.6 percent to ¥722, Nomura Securities, Japan’s largest broker, was up 2.7 percent to ¥1,460, and Nikko Cordial rose by 4 percent to ¥542 as it announced plans to return 50 percent of its annual recurring profits as dividends.

New gains in crude oil prices sent the oil and coal sub-index up 3.2 percent. Nippon Oil gained 4.7 percent to ¥873, while Inpex added 3 percent to ¥851,000.

The London equities markets closed in positive territory on Wednesday as the FTSE 100 gained 0.3 percent to 5,377.5 and the FTSE 250 was up 0.4 percent to 7,734.6 on a volume of 2.8 billion shares traded.

Life assurers saw advances in share value. South Africa-based life assurers Old Mutual gained 2.5 percent to 134p on better-than expected first half results and a forecast that its strong performance will last through the year.

Aviv was up as well, by 2.2 percent to 657p, ahead of its first-half report and on confirmation that Lord Sharman was coming aboard as its new chairman.

Mobile phone company Vodafone gained 0.3 percent on the day to 147p on an assessment by Dresdner Kleinwort Wasserstein that investors were not taking note of rising valuations of Japanese companies and the improvement in Vodafone’s operations in Japan.

Banks didn’t do as well, as Lloyds TSB lost 1.8 percent to 474p, Royal Bank of Scotland dropped 0.9 percent to £16.05, and HBOS was down 0.7 percent to 903 ½p.

Other FTSE 100 decliners included oil company BP, which lost 0.8 percent to 653 ½p, pharmaceutical company AstraZeneca, which was down by 0.7 percent to £25.90, and mining company Rio Tinto, which dropped 0.8 percent to £20.32.

Record label EMI, however, gained 3 percent to 254 ¼p on the news that it is in discussions to purchase New York-based independent label Wind-Up Records, which records Creed and Evanescence. The proposed purchase prices is said to be $125 million.

In Europe on Wednesday, the FTSE Eurofirst 300 gained 0.9 percent to 1,199.87.

The banking sector was especially active on the day. Commerzbank was up 8.3 percent to €21.70 on talk that it could become the target of a foreign takeover bid.

Among those seen as contenders for the German bank are France’s BNP Paribas and Spain’s Santander Central Hispano. Santander denied the reports, while Paribas said that it never comments on such rumors. BNP gained 1.2 percent to €61.05 and Santander was up 0.5 percent to €10.14.

Elsewhere in the banking sector, Unicredito added 2.5 percent to €4.615, while HVB was up 3 percent to €23.10.

In the airlines sector, Lufthansa gained 5.1 percent to €11.29 after it reported its full first-half data on earnings and WestLB confirmed their “outperform” rating for the air carrier.

In utilities, French company Suez added 5.8 percent to €24.90 after a rise of 7 percent on Tuesday on positive analyst sentiment regarding the news that Suez will buy the portion of Belgian electricity supplier Electrabel. Dresdner Kleinwort Wasserstein rated Suez at “buy” and increased its price target from €20 to €26.

Decliners on the day included Bayer, which lost 1.2 percent to *30.09. Its quarterly report showed earnings up less than expected. Even so, the drugs and chemicals group raised its annual earnings forecast. Danish drugmaker Novo Norsk was also down, by 2.7 percent to DKr326, ahead of its quarterly report.

The equities markets in Australia saw new record highs on Wednesday, but New Zealand stocks were down on the day.

The S&P/ASX 200 index in Australia closed up by 0.18 percent to 4.425.6 to set a new high for the third straight day on the strength of strong quarterly earnings reports from Stockland Group, a property trust, and Coca-Cola Amatil.

Stockland gained 1.7 percent to A$6.03 as it reported a 13.5 percent gain in annual its operating profits. Coca-Cola Amatil Ltd. Was up 3.2 percent to A$8.13. It reported that first-half earnings were up by 16.8 percent on strong sales in Australia. However, Commonwealth Bank lost 2.7 percent on the day after reporting second-half earnings that were below expectations.

Woodside Petroleum was also down on the day on profit-taking after advancing nearly 10 percent in the previous two trading sessions. Meanwhile in New Zealand, the top-50 index there fell 0.5 percent to 3,324.3.

Among the blue-chips, Fletcher Building held flat at NZ$7.18 despite reporting an earnings jump of 31 percent in the second half. Telecom lost 1 percent to NZ$6.16 as investors anticipated the launch of rival company Vodafone’s 3G mobile network.

In Japan on Monday, the Nikkei 225 closed up 0.1 percent to 11,778.98 even though it was down by 1 percent at the end of morning trading, and the Topix ended the day 0.2 percent higher at 1,191.90 after being down by 0.9 percent tat the end of the morning.

Shares were down in the morning on uncertainty about what might happen if the upper house of parliament rejected Prime Minister Junichiro Koizumi’s post office privatization proposal.

However, as the losing outcome became clear and new elections were called, most analysts said they were convinced that not only would new elections not disturb Japan’s economy recovery, but that a change might actually be a positive thing for the economy.

It was especially thought that political parties trying to gain more political power might be reluctant to take fiscal tightening measures, something the present government has wished to impose.

Telemarketer Mishi Moshi Hotline, which was up by 4.2 percent on the day to ¥11,560, particularly stands to gain from a political campaign season as it provides public opinion poll services for the media. It also recently released it quarterly report, which showed an increase of 31 percent in net profits.

Consumer Credit company Credit Saison gained 5.9 percent to ¥3,950 on the news that it had a quarterly rise in net profits of 50 percent.

Mitsui Engineering Shipbuilding, however, was down by 4.5 percent to ¥212 after a report of quarterly losses four times higher than the same quarter in 2004 as well as a prediction of net losses in the six months ending in September due to high costs for materials.

The FTSE 100 gained 29.6 points to 5,344.3 and the FTSE 250 lost 6.6 points to 7,673.9 in a mixed day on the London equities markets. Volume was 2.9 billion shares, helped by share placings by several mid-cap companies.

The oil sector was higher on crude oil price gains. BP was up 1.9 percent to 649 ½p. BHP Billiton also gained 1.9 percent to close at 840p.

In the banking sector, Standard Chartered added 7.6 percent to £12.11, an all-time high based on better than predicted interim results, an acquisition of Korea First, a South Korean bank, as well as on speculation that US banking group Citigroup might be interested in bidding for Standard Chartered.

Barclays gained 1 percent to 582p on an upgrade to “buy” and a raised target price of 640p per share from Deutsche Bank. Royal Bank of Scotland, however, lost 1.6 percent to £16.22 on a lowered earnings estimate for 2006 and 2007 by ABN Amro.

Life assurance company Prudential gained 0.5 percent to 524 ¼p after Credit Suisse First Boston increased its price target to 560p.

Meanwhile, telecommunications equipment manufacturer Marconi gained 14.7 percent to 306 ¼p when it said it was involved in talks with Huawei Technologies of China, a privately owned company, on a number of issues.

The FTSE Eurofirst 300 ended the week at nearly the same level as it began, at 1,174.47, although in the middle of the week it managed to hit a three-year high.

Banks had a mixed week. Allied Irish Bank reported a first-half profit of 22 percent on more loans, leading ABN Amro to upgrade the bank from “hold” to “add” and to raise its earnings estimates and price targets.

This did not prevent Allied Irish from losing 1.1 percent on the week to €17.65 on profit taking. Société Générale, which had gained 10 percent on the year before it reported second-quarter results on Thursday, saw a 2.1 percent loss to *88.35, again on profit-taking.

BNP Paribas saw its shares fall in value on Wednesday after its quarterly report presented results that were above predictions, but it managed gains at the end of the week to close 1.3 percent higher at €60.40. Commerzbank also had a good week, gaining 7 percent on the week to €19.72 even though it reported a decline of 27 percent in net profits in the second quarter.

One of the biggest losers of the week came from the automobile manufacturing sector, as BMW declined by 4.9 percent over the week to €36.85 on a 15.5 percent decrease in pre-tax profits in the second quarter.

The Tokyo equities markets were down again on Friday as investors worried about the consequences of a defeat for the prime minister’s plan to privatize the post office.

If the upper house of parliament does not approve the legislation, Prime Minister Junichiro Koizumi has promised to dissolve parliament and call elections.

The Nikkei 225 was down 0.98 percent to 11,766.48, while the Topix index lost 1.24 percent to 1,189.19. All 33 sectors of the Tokyo Stock Exchange were down on the day.

Banks were lower, with Mizuho Financial Group down 1.2 percent to ¥502,000, MTFG lost 1.2 percent to ¥943,000, and UFJ dropped 0.9 percent to ¥580,000.

Besides the uncertainty over the privatization vote, MTFG and UFJ were also affected by a report that that the two banks are delaying plans for a merger, a rumor that both banks denied.

Automobile manufacturers also saw major losses as Honda, Nissan, and Toyota each lost 1.9 percent of the value of their shares. Honda stood at ¥5,700, Nissan declined to ¥1,145, and Toyota fell to ¥4,170.

Not all individual shares were down, however. Condominium developer Haseko gained 9.3 percent to ¥258 on the announcement that it will buy back ¥142.8 billion in preferred shares from three banks.

Fuji Television gained 1.4 percent to ¥221,000 when it upped its profit estimate for the full year by 7 percent due to TV shopping and advertising revenues that are higher than expected. Fuji is Japan’s biggest private broadcaster.

The New York stock markets were down on Thursday on profit-taking and on reports that retail sales in the United States were generally down in July.

The Dow Jones Industrial Average fell 0.8 percent to 10,610.10, the Nasdaq composite index was down 1.2 percent to 2,191.32, and the S&P 500 lost 0.7 percent to 1,235.86.

In the retail sector, Wal-Mart was down 0.8 percent to $49.29 even though same-store sales were up by 4.4 percent in July.

The Gap was down 1.2 percent to $20.69, Limited Brands fell 2.7 percent to $24.35, and Nordstrom, which has gained nearly 70 percent in the past year, declined by 8.2 percent to $33.45.

The Gap, Limited Brands, and Nordstrom all reported lower-than-expected sales in the second quarter. The retail sector as a whole was down 2.2 percent on these results for the worst performance in a sector on the day.

Elsewhere, HSBC Holdings agreed to buy credit card company Metris, sending shares in both companies down on the day. HSBC Holdings fell 0.8 percent to $81.90, while Metris lost 2.6 percent to $14.46.