Of the Nikkei 225 stocks 138 gained, 77 declined and 10 traded unchanged. Tokyo Dome led advancing realty stocks, climbing 4.14%. Other realty stocks gained as well. Comsys Holdings declined 0.48%, Kajima Corp jumped 1.55% and Taisei Corp edged up 1.49%. Commodity and energy stocks however slumped as oil and metal prices retreated.

Crude oil prices retreated 2.7% to $79.02 per barrel. Inpex Holdings and Nippon Oil fell 3.31% and 1.96% respectively as a result.

Metals prices also tumbled as nickel slipped 4%, zinc dropped 3.4% and copper shed 3.1%. Nickel producer Sumitomo Metal Mining declined 1.06%, while Nippon Mining House plunged 0.35%.

Finance Minister Fukushiro Nakaga said today the Bank of Japan’s monetary policy should support economic growth in order to achieve sustainable economic recovery. Bank of Japan today began its 3-day policy meeting today which is expected to culminate in the bank holding its key bank rate at 0.5% on Thursday.

Deputy Governor of the Bank of Japan Kazamusi Iwata and board member Miyako Suda favor a rate hike, while Governor Toshihiko Fukui contends the bank will gradually raise interest rates to prevent inefficient investments and sustain long-term growth.

Economists believe growing business confidence among Japanese large manufacturers and huge capital outlays showed in the Tankan Survey will force the bank authorities to forgo an interest rate hike.

Dealogic, Merger and advisory data tracking company said today that Japan’s equity capital markets had raised $19 billion by the end of September compared to $46 billion a year ago. Japan as ranked eleventh in the global ranking of funds raised. However, debt markets raised $160 billion year compared to $150 billion a year ago.

The yen traded at 117.26 to the dollar at the close of trade from 116.59 on October 5th. Exporters Honda, Sony gained 0.01% and 0.52% in that order.

Of the Nikkei 225 index shares, Fast Retailing led advancers with a rise of 6.94%, followed by gains of 6.85% in UBE Industries, 5.66% in Clarion Co, 4.90% in Toray Industries and 4.14% in Tokyo Dome.

Toray Industries, Inc. today announced its decision to expand domestic production capacity of its PAN-based carbon fiber TORAYCA. The company plans to add two integrated production lines for carbon fiber covering polymerization, precursor spinning, and carbonization (total of 2,200 tons per year), and one production line for prepreg (5.8 million m2 per year) at its Ehime Plant. Toray will spend a total of 25.0 billion yen for this expansion and these additional production facilities are expected to start operation from January 2007 and estimates sales to exceed 110 billion yen in 2010.

Financials gained as well. Mitsubishi UFJ rose 0.08%, while Mizuho Financial jumped 0.14%.

Taiheiyo Cement led decliners, falling 9.52% followed by losses in Sumitomo Osaka Cement Company Limited of 5.02%, in Sumitomo Metals and Mining of 3.78%, in NTT Data Corp of 3.75% and Sumco of 3.63%.

Cement producer fell on news that declining housing starts had led to August shipment to decline between 4% and 8% from a year ago.

Goldman Sachs offer to buy Simplex at a premium of 43% or valued at 124.7 billion yen prompted buy orders to outnumber sells by 748 to 1 kicking trade curbs on the exchange. Goldman Sachs plans to invest 200 billion yen in Japan’s properties this year after properties gained the most in 16 years by 1%. Commercial land prices in Tokyo and Osaka have jumped more than 15% in the last year. However, land prices are still considered cheaper than in the U.S. and Europe.

Olympus Corp posted its biggest gain of 0.58% to 5,100 yen on Nikkei News report that the company will exceed its earnings estimates.