The recent upsurge in the UK property market means that as much as 10% of the market is driven by property investors looking to purchase second homes as investment properties.

The result is a bouyant market when it comes to selling houses, as demand for property current outstrips demand.

The result is that there are now many companies looking to buy houses and complete a quick property sale, and there are plenty of cash buyers for homes on the property market.

Commonly, people are looking to buy a property and rent it to tenants. However, with a series of interest rate rises making it difficult for some home owners to keep up on their mortgage repayments, a number have decided to sell and rent back property in order to release cash value of their home to property investors, who then rent it back to the original owner.

Polls ahead of Sunday’s election in Japan showed that the current ruling coalition, let by the Liberal Democratic party, is likely to win an easy majority.

This set investors’ minds at ease and domestic stocks sowed significant gains on the day.

There had been worries that without an obvious majority, the equities markets could be hurt by lack of direction on economic policy. Overall, the Nikkei 225 was up 1.3 percent to 12, 692.04, while the Topix index gained 1.1 percent to 1,293.35.

The securities sector gained 0.8 percent after declines in the morning. The insurance sector was up 2.8 percent, while the real estate sector advanced by 2.4 percent.

In real estate, Mitsui Fudosan was up 3.7 percent to ¥1,544. In addition, Leopalace21, which builds and subleases apartments, added 7.2 percent to ¥2,310 on the news that Goldman Sachs had reiterated its “outperform” rating for the company.

In the oil sector, meanwhile, Inpex was up 3.6 percent to ¥844,000, Nippon Oil added 1.7 percent to ¥889, and AOC advanced by 5 percent to ¥2,115.

On the London equities markets on Friday, the FTSE 100 gained 0.3 percent to 5,359.3 and the FTSE 250 was up 0.5 percent to 7,851.1. These results capped a week in which the FTSE 100 added 0.6 percent and the FTSE 250 advanced by 0.8 percent.

Most attention during the week had to do with mergers and acquisitions. Industrial gasses specialist BOC Group and rival Linde of Germany were said to be close to a merger deal, keeping BOC close to record high levels at £11.16.

Retailer Tesco lost 0.7 percent to 329¼p on rumors that it was interested in buying Albertson’s, second only to Wal-Mart in the US. Support services company Rentokil, being pursued by Sir Gerry Robinson, lost 0.2 percent to 163¼p.

Elsewhere, housebuilders were up. McCarthy & Stone, the UK’s biggest builder of retirement homes, gained 5.1 percent to 602p on the announcement that this year’s sales would not be down as much as it had earlier estimated. This news helped Westbury up by 2.6 percent to 450½p, while George Wimpey added 2.6 percent to 425¾p.

The New York Equities markets were down slightly on Thursday after big gains on Tuesday and more subdued gains on Wednesday, as the market seems to have been proceeding on the assumption that the economy will benefit from the aftermath of Hurricane Katrina rather than decline due to disruptions and dislocations.

Most analysts are betting that in the wake of the storm rebuilding will benefit the economy, interest rates will stop rising, and oil prices will go down. Others are not so sure that this will be the case.

The Dow Jones Industrial Average dropped 0.4 percent to close the day at 10,595.93, the Nasdaq composite lost 0.3 percent to 2,166.03, and the S&P 500 declined by 0.4 percent to 1,231.68.

Homebuilders were generally down on the day, with Hovnanian leading the decline after reporting earnings that fell below predictions. Hovnanian fell by 6.7 percent to $57.49. Elsewhere in the sector, KB Homes declined by 1.6 percent to $74.69, Lennar fell 2.4 percent to $60.95, and Toll Brothers lost 3.3 percent to $47.25.

Coca-Cola Enterprises dropped 9.6 percent on the news that it had reported less-than-positive earnings guidance. Discount retailer Sears Holdings fell by 5.2 percent to $127.81 on earnings that were below expectations. EBay lost 3.8 percent to $38.93, bringing its decline for the year to 34 percent and making it one of the S&P’s worst performers.

On the other hand, Apple gained 2.3 percent to $59.78 as it presented its new iPod for mobile phones.

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 Thursday, the FTSE Eurofirst 300 lost 0.15 percent to 1,203.25, backing off from 38-month highs reached on Wednesday.

Part of the loss came on the sudden end to a rally in the construction sector. Lafarge, the world’s biggest cement producer, announced that it was cutting back its forecasts for the full year and reported first half net profits that had fallen by 18 percent. It blamed tough competition and a drop in demand in Germany for the disappointing results. Lafarge lost 7.4 percent on the day to €72, a decline which erased nearly all its gains on the year.

Elsewhere in the sector things were a bit better, as Swiss company Holcim gained 0.2 percent to SFr82.95, while Spanish builder Sacyr Vallehermoso advanced 2.7 percent to €22.58 on the announcement that it wants to refinance around €1.3 billion in debt by the end of the year. Despite these gains, the construction sub-index fell by 1.4 percent on the day.

There were declines despite good earnings reports in other sectors. Brewer Inbev lost 2 percent to €31.40 in spite of a significant jump in first-half earnings when it warned that declining beer sales in western Europe could mean job cuts and brewery closures in that region.

Opthalmic lens manufacturer Essilor International had largely the same experience, losing 2.2 percent to €64.35 even though it saw a 19 percent rise in first-half net profits, better than expected, when it warned that higher operating costs would mean less profits in the second half of the year. And French retailer PPR lost 0.1 percent to close the session at €87.75 despite a first half performance by its luxury goods division that led to a better-than-expected first half performance.

In London on Wednesday, the FTSE 100 was up by only 0.1 percent to 5,365.9, while the FTSE 250 gained 0.7 percent to close at 7,850.3. The FTSE 250s closing level was another all-time high.

There were gains a wide variety of sectors on the day. Property group Savills gained 16.3 percent to 849p. Taylor Woodrow was up 3.3 percent to 326¾p on speculation that it could gain contracts to rebuild houses in the area affected by Hurricane Katrina as well as on rumors that it could be a takeover target of housebuilder George Wimpey.

Chemical group BOC gained 1.3 percent to £11.24 on rumors that BASF might soon bid for it. GlaxoSmithKline was up 1 percent to £13.69 on the purchase of ID Biomedical of Canada for £800 million. Also in the pharmaceuticals/health care sector, Boots added 1.3 percent to 631p on speculation that it might sell International Healthcare to GlaxoSmithKline.

Accountancy software firm Sage was up 2.9 percent to 232¾p. Electrical retailer Dixons gained 0.8 percent to 115¼p. British Land advanced by 1.7 percent to 914p.

Profit-taking hit both export-dependent and domestically oriented stocks in Tokyo on Tuesday to send the Nikkei 225 down by 0.3 percent to 12,599.43 even though it passed 12,700 for the first time in four years at one point during the day.

The Topix index was also down on the day, by 0.3 percent to 1,286.29.

The iron and steel sector was down 1.2 percent at the end of the day despite having hit an eight-year high at one point on the day.

The real estate sector dropped by 0.8 percent. Pre-election nerves took much of the blame for the retreats.

The election is slated to take place on Sunday, and investors seem to be afraid that the result will produce no majority and a resulting lack of direction on policy matters.

Profit-taking even hit some stocks that should have benefited from strong economic news. Fast Retailing lost 1.4 percent to ¥8,490 even though it announced on Monday that it would spend ¥400 billion for mergers and acquisitions with the goal of increasing its sales target, a plan endorsed by Merrill Lynch on Tuesday.

In the steel sector, Nippon Steel lost 0.6 percent to ¥342, while JFE fell 1.5 percent to ¥3,270. There were some advances on the day. In the construction sector, general contractor Taisei gained 2 percent to ¥418.

Additionally, Nippon Telegraph & Telephone added 1.4 percent to ¥490,000 on the news that it had spent over ¥500 billion buying back shares from the government, sending the government’s share of the company down to 33.7 percent and ending the company’s privatization drive.

It was a losing day on Wall Street on Friday, but the major indices managed to post gains on the week, remarkable in a week that saw the worst hurricane to ever hit the US coast and a number of economic reports that were far from positive.

The Dow Jones Industrial Average lost 0.12 percent on the day to 10,447.37, although it gained 0.4 percent on the week. Meanwhile, the Nasdaq composite lost 0.32 percent for the day to close at 2,141.07, a gain of 1 percent on the week, and the S&P 500 was down 0.29 percent on the day but up 1.1 percent on the week to close Friday’s session at 1,218.02.

The oil sector made significant gains as prices rose due to closures of oil platforms and refineries as well as predictions of supply shortages. Construction companies and their materials suppliers also saw gains as it became clear that extensive rebuilding in the hurricane zone would be necessary.

The S&P 500 oil and gas refiners’ index gained 17.8 percent on the week. In individual oil stocks, ExxonMobil was down 1.3 percent on Friday but gained 4.3 percent on the week to $60.87, Sunoco fell 1.5 percent on Friday but was up 18 percent on the week, and Valero Energy gained 0.4 percent on the day and 16.6 percent on the week to $109.96.

In the construction sector, Halliburton was up 8.6 percent on the week, even though it lost 1.3 percent to close at $62.35. Retailers had a bad week, as the S&P 500 apparel retailers index fell 3.7 percent on the week and the department store index lost 4.9 percent.

Leisure sectors also saw declines, as the S&P casino index was down 5.1 percent and the hotels index lost 4.1 percent, both on concerns of the short and long-term effects of Katrina on sector business in the Southeast US.

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.

In Europe on Friday, the FTSE Eurofirst 300 saw losses on the day, falling by 0.1 percent to 1,183.95, but it gained 1.7 percent on the week.

Oil and construction were higher for the week, mainly in consideration of the damage caused by Hurricane Katrina in the Gulf Coast region of the United States.

Carmakers and reinsures saw losses for the week, however. The oil sector as a whole gained 4.2 percent to 1,438.33, with Finnish refiner Neste Oil up 13.3 percent to €27.90 on wider margins.

The construction sector was up 1.9 percent as it became clear that the storm-ravaged region will require extensive rebuilding after it is drained of water.

Reinsurers suffered as it became clear how much money in claims they would have to pay out to victims of Katrina. Munich Re and Swiss Re each estimated that their payouts could be in the neighborhood of $500 million. Munich Re lost 1.3 percent on the week to €90.02, while Swiss Re was down 1.4 percent on the day and lost 2.7 percent for the week to €79.85.

Zurich Financial SVS declined by 2.3 on the week to SFr215.60. Hannover Re reduced its profits estimate for the year by one-third.

Meanwhile, in the automobile manufacturing sector, high gasoline prices and a generally weaker dollar sent Porsche down 2 percent to €625.85, while DaimlerChrysler lost 3.2 percent to €40.60.

In Tokyo on Thursday, the Nikkei 225 closed at its highest level in four years as the Japanese economy seemed to be on track in its recovery and as oil prices seemed at least not to be rising as quickly as they had been earlier. The Nikkei was up 0.8 percent to 12,506.97, while the Topix index gained 0.9 percent to 1,277.33.

The real estate sector made the biggest gains on the day, rising 2.1 percent as a whole on the strength of data that showed the biggest year-on-year jump in housing starts in seven years. Mitsui Fudosan, the largest developer in Japan, gained 1.8 percent to ¥1,446.

The iron and steel sector also did well on the day, rising 1.7 percent for the day. Nippon Steel added 1.9 percent to close at ¥328. Several stocks gained specifically due to anticipation that they would do more business as reconstruction from the damage caused by Hurricane Katrina in the United States gets underway.

Earth-moving equipment maker Komatsu was up 3.4 percent to ¥1,267, while Hitachi Construction Machinery gained 4.8 percent to ¥1,776. In addition, Tokyu construction added 7 percent to ¥200 on the news that the FTSE would list its shares on the FTSE All World Index.

The FTSE Eurofirst 300 saw gains for the second straight day on Thursday, rising by 0.7 percent to 1,185.83.

Builders were the big winners of the day as it become clear just how much reconstruction will be necessary on the Gulf Coast of the United States in the wake of Hurricane Katrina, and shares in insurers and reinsures moved little as it was still unclear exactly how much that rebuilding will cost.

Builders and building materials suppliers in Europe benefited from the impression that US companies will be unable to provide all the materials needed for the recovery effort. The world’s biggest cement maker, Lafarge, gained 2.9 percent to €77.20.

Lafarge already does over half of its business in the US. Elsewhere in the sector, Holcim was up 1 percent to SFr82. Spanish builder ACS added 3 percent to €25.08 on a strong report of first-half profits due to its participation in the Spanish building boom and expansion into industrial services.

Insurers and reinsures were mixed as analysts said that any estimates of the monetary damages caused by Katrina were sheer speculation, considering that many areas were still inaccessible.

Swiss Re was up by 0.3 percent to SFr81 and Munich Re gained 0.1 percent to €90.90, but Hannover Re lost 1 percent to €28.82. The biggest loser of the day was Deutsche Post, which dropped 3.9 on the day to €19.65 amid heavy trading after it was revealed that it had made a bid to purchase Exel, the British logistics group.

Another 1995 spinoff from the former Bundespost, Deutsche Postbank saw an advance on the day, adding 3.5 percent to €46.01 as JP Morgan raised its target price to €40 per share from €32.

In Europe on Tuesday, insurers saw slight gains on hopes that the damage from Hurricane Katrina would not be as extensive and as costly as feared, while oil companies saw the value of their stocks rise with the gains in crude oil prices.

Meanwhile, construction companies saw mixed results. The FTSE Eurofirst 300 was down by 0.04 percent to 1,166.94. In the insurance sector, reinsurer Munich Re put its estimate of Katrina’s damage at between $15 billion and $20 billion in insured loss, and said that it did not see the hurricane’s effects as any reason to alter its 2005 earnings forecast. Munich Re gained 0.3 percent to €91. Meanwhile, Hannover Re gained 0.7 percent to €29.90.

In the oil and gas sector, prices that hit new record highs outweighed the known and possible damage to production facilities in the area affected by Katrina to send share prices higher. Repsol YPF was up 0.4 percent to €23.37, while Total gained 0.6 percent to €207.80 and Royal Dutch Shell added 1 percent to €25.99.

In the construction sector, Irish building materials group CRH dropped 2.8 percent to €21.65 despite having reported a 20 percent rise in pre-tax profits. On the other hand, Spanish builders did better. Acciona saw a 2.5 percent gain to €89.40 on its report that first-half profits were up by 37 percent, while ACS, Spain’s largest construction group, was up 1.7 percent to €24.10 in anticipation of the release of its first-half results on Wednesday.

Despite the chaos caused by Hurricane Katrina on the US Gulf Coast on Monday, the New York equities markets recovered from early losses to close in positive territory for the day.

The Dow Jones Industrial Average closed up 0.6 percent to 10,463.05, the Nasdaq composite ended the day ahead by 0.8 percent to 2,137.65, and the S&P 500 gained 0.6 percent to close at 1,212.31.

Higher oil prices helped oil companies to gains. Chevron gained 0.2 percent to $59.51, while BP added 0.4 percent to close at $66.35.

Some companies saw gains due to projections of increases in business due to the hurricane. For example, housing products retailer Home Depot was up 1.8 percent to $40.54. Others were down on the day due to the effects of the storm.

Insurers were hard hit, as it was estimated that losses from the Katrina might total as high as $25 billion, the costliest storm in the history of the US. St. Paul’s Travellers lost 1.1 percent and Allstate was down by 1.3 percent to $57.18. Isle of Capri Casinos was down by 2.9 percent to $23.47. The company, which runs riverboat casinos in Louisiana and Mississippi could sustain severe losses if their facilities are damaged, as production disruption insurance generally does not come into force until 90 days after the damage occurs.

On the winning side for the day PaAmSat, a new satellite operator set to become the largest in the world, gained 20.2 percent on the day to $23.80.

The New York equities markets were down on the day Friday and on the week as durable goods orders and sales of existing homes were down, as well as on data released on Friday by the University of Michigan that consumer sentiment in the US has fallen more than was expected.

Not helpful for the markets, either, were comments by Federal Reserve chairman Alan Greenspan that housing prices are unbalanced and could end up affecting the US economy adversely.

The Dow Jones Industrial Average lost 0.5 percent on the day and 1.5 percent on the week to close at 10,397.29, the Nasdaq composite fell 0.6 percent Friday and 0.7 percent for the week to 2,120.77, and the S&P 500 was down by 0.6 percent for the day and 1.2 percent on the week to 1,205.1, leaving both the Nasdaq and the S&P at their lowest levels since the middle of July.

Some companies that saw losses this week blamed climbing oil prices that cut into consumer spending for other items.

Applebee’s International, the restaurant chain, said that high oil prices were the main reason that it reduced its earnings predictions for the year. Applebee’s lost 8.1 percent on the week to close at $22.36 on Friday.

Furniture maker La-Z-Boy lost 3.8 percent this week to end at $13.51 after it said second-quarter sales would be down due to high oil prices impinging on consumer spending in other areas.

Homebuilders saw losses on the week despite a report of a record month for sales of new homes in July. Beazer Homes lost 4.4 percent on the week to $58.56, KB Homes lost 2.6 percent to $$70.09, and Pulte Homes declined by 1.7 percent to $83.02. The S&P sector index for homebuilders dropped 1.2 percent on the week.

There were gains on the week, with York International, the heater and air conditioner maker, up 37 percent to $57 after an offer from Johnson Controls.

The rest of the sector also saw gains. In the technology sector, Hewlett Packard gained 0.4 percent to $27.01 when it said it would invest $150 million in radio frequency identification technology.

The Tokyo equities markets were up on Friday, but investors seemed to be waiting for more evidence that the economy is recovering before making too much of a commitment.

They also looked to be concerned about the continuing trend up in crude oil prices and indications that the September 11 elections might result in no clear majority.

Thursday figures were released that showed export volumes are lower than last year, and on Friday there was news that Japan is still in the midst of mild deflation.

The Nikkei 225 was up 0.3 percent to 12,439.48, while the Topix index gained 0.35 percent to 1,272.46.

Losers on the day included Fast Retailing, which lost 9.1 percent to ¥8,180 on its first day of trade on the Nikkei index, but the decline was small in comparison to its gains after it was announced that it would be added to the Nikkei.

Also down on the day was Sumitomo Realty Development, which fell 0.4 percent to ¥1,388 as the real estate sector as a whole declined by 0.6 percent.

The iron and steel sector was up, however, by 1.1 percent, as Nippon Steel gained 1 percent to ¥310 on higher demand.

Ferro-alloy maker Nippon Denko gained 9.05 percent to ¥446 on a tripling of its first-half net profit due to higher prices on its products.

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.

Higher oil prices managed to wipe out any early gains on the New York equities markets on Wednesday.

The Dow Jones Industrial Average closed down 0.8 percent to 10,434.87, the Nasdaq composite ended up 0.4 percent lower at 2,128.91, while the S&P 500 dropped 0.7 percent on the day to close at 1,209.59.

The early gains had been in response to data showing record new-home sales in the US in July, and some home builders managed to hang on to their gains at the end of the session.

Beazer Homes was up 2.6 percent to $60.98, Pulte Homes added 1.6 percent to $84.84, and Centex rose by 0.9 percent to $66.13.

The restaurant industry saw losses on the day as worries continued that high gasoline prices are cutting into consumer spending.

Restaurant chain Applebee’s International lost 7 percent to $22.37 after it cut its 2005 earnings forecast and blamed it on high oil prices. Outback Steakhouse also was down on the day, falling 2 percent to $42.92, while Brinker International dropped 3 percent to $42.49.

Meanwhile, Google gained 1.1 percent to $282.57 when it announced its first venture into the internet telephone market.

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.

The New York equities markets fell on Tuesday in response to numbers showing the number of existing homes sold were below predictions even though the figures showed that the housing sector continues to prosper as the number of homes sold during the month was the third largest ever.

The Dow Jones Industrial Average lost 0.5 percent to 10,519.58, the Nasdaq composite fell 0.2 percent to 2,137.25, and the S&P 500 declined by 0.3 percent to 1,217.58.

The news about housing sales sent shares in home builders down. KBH homes saw the biggest loss, declining by 1.7 percent to $70.96. Lennar fell 1.3 percent to $58.93, while Pulte Homes lost 0.8 percent to $83.48. The home furnishings sector was also down on the day. La-Z-Boy blamed rising oil prices as it announced that it expects second-quarter sales figures to be down as it fell 3 percent to $13.57. Ethan Allen Interiors lost 1.2 percent to $31.94, and Furniture Brands International also lost 1.2 percent to end the day at $19.27.

The pharmaceuticals sector was mostly up, except for Merck, which fell by 1.2 percent as it still was feeling the effects of the personal-injury judgment against the company on Friday. Elsewhere, the sector did not seem to be bothered by Merck’s troubles. Amylin Pharmaceuticals was up 27.7 percent to $28 on the announcement that test results were positive for a weekly injection treatment for type 2 diabetes patients. Eli Lilly, which helped develop the drug with Amylin, was up 1.9 percent to $53.72, while Alkermes, which developed the injection system that will be used with the drug, added 11.6 percent to $17.67.

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.

The Japanese equities markets were up on Wednesday on heavy foreign buying as the Asian nation’s political turmoil began to ease.

The Nikkei 225 gained 1.7 percent to 12,098.08, its highest close since April 2004, while the Topix index closed 1.8 percent higher at 1,227,85, its highest close in four years.

Foreign buyers seemed to be accepting analysts’ opinions that Japan’s political troubles will not have any significant negative impact on the economy and could in fact be a positive factor in long-term economic growth.

There was also good news on several fronts. Machinery orders were strong, corporate goods price data pointed to an end of deflation, and the Cabinet Office monthly report contained a more positive assessment of the economy.

Foreign investors were especially interested in the machinery, steel, and textile sectors. Nippon Steel gained 1.4 percent to ¥292, and textile manufacturer Unitika was up 1.3 percent to ¥531. Quarterly reports also led to increases in share values. Mitsubishi Materials was up 6 percent on the day to ¥316 on the strength of its quarterly profits, which were reported on Monday.

Japan’s second biggest property developer, Mitsubishi Estate, gained 3.5 percent to ¥1,304 on a positive quarterly report. In the chemicals sector, Showa Denko gained 6 percent to ¥299 on a tripling of profits in the first half.

Retailers were up on the day as well, on reports that the political situation could delay implementation of a hike in the consumption tax. Department store chain Mitsukoshi added 2.7 percent to ¥531.

Equities markets in the eurozone were buoyed by advances in the oil and gas sectors as crude oil prices were up again and Credit Suisse First Boston and Merrill Lynch both boosted their outlook for oil stocks.

Total was up 2.2 percent to €202.30, Repsol YPF gained 2.1 percent to €22.41, and Eni advanced by 2.2 percent to €22.46. Neste Oil was up 2.2 percent to €23.50, Statoil rose by 2.1 percent to NKr143.50, and Norsk Hydro advanced to NKr638, up 4.2 percent.

The FTSE Eurofirst 300 gained 0.6 percent on the day to 1,157.21, a new 3-year high. Meanwhile in London, the FTSE 100 gained 0.8 percent to 5,229.6, the fourth day in a row that the index reached a new 3-year high.

The FTSE 250 gained 1.2 percent to reach an all-time high of 7,487.9. Trade was strong at 3.9 billion shares traded.

At least part of the gains in London came after the announcement that the International Olympic Committee had awarded the 2012 Olympic Games to London. Companies from many sectors stand to benefit from the games.

Among those seeing advances today were WS Atkins, the UK’s biggest engineering consultancy, which gained 4.8 percent to 716p. Senco advanced by 2.1 percent to 259 ¼p, Amec rose 0.9 percent to 331p, and Carillion was up 5 percent to 284 p.

Other gainers included Balfour Beatty, which gained 5.2 percent to 347.25p, building materials group Hanson, which advanced 2.1 percent to 545 ½p, and Severfield-Rowen, which rose 9 percent to 707p. Caterer Compass Group was up 2.42 percent to 244p, while Workspace gained 4.3 percent to 248 ¾p.