Japan's Real Estate Market Climbing Uphill

Wednesday, February 15 2006 @ 09:35 pm UTC

Contributed by: jron

On Wednesday morning, Increases in real estate and securities stocks climb up the Japanese stock market. The Topix rose 0.7 per cent to 1,647.09, while Nikkei 225 closed 0.6 per cent higher at 16,274.18.

Because of recent falls, it seems like real estate is making up for it, with an increase of 2.5 percent. Japan's biggest property company, Mitsui Fudosan jumped 3.6 percent to 2,465 Yen. Mitsui Fudosan's largest rival, Mitsubishi Estate achieved 1.7 percent increase to 2,635 Yen, 3.4 percent was Tokyu Land's increase to 1,130 Yen.

Nomura, Japan's biggest securities house, rose 2.4 percent to 2,170 Yen, Nikko Cordial jumped 3.1 percent to 1,746 Yen, with Daiwa Securities also up 3.1 percent to 1,347 Yen. Monex Beans, the retail online broker, rose by the same degree to 167,000 Yen. Jumping 2.7 percent, seems like shares in securities companies followed the market up.

Mitsubishi UFJ, the world's biggest bank by assets, was up 1.9 percent to 1,640,000 Yen, which resulted to banking putting up a strong performance.

If the Bank of Japan ends its zero interest rate policy soon banks will make higher profits because of wider loan margins. But higher interest rates could hit the property market. They could also damage business for retail online brokers, by making it harder for aggressive investors to buy shares with cheap borrowed money. The strong rises in real estate, securities and banking crystallize the concerns of some analysts that investors are pushing up Japanese shares without making enough distinctions.

By: Dijon Wainwright