Japanese shares rose, with the Nikkei 225 Stock Average recording its highest close in 4 1/2 years, after the yen weakened to its lowest level since June 2009, boosting the earnings outlook for exporters.
Construction companies posted the best risk-adjusted returns among Japanese stocks since the country was struck by a record earthquake and tsunami almost two years ago, as the government rebuilt infrastructure and a new administration seeks to stimulate economic growth.
Developers in Tokyo’s bayside neighborhoods, where apartments were built on reclaimed land, are halting sales after Japan’s earthquake turned some of the landfill into mud, shattered pipes and severed water supplies.
Bank of Japan Governor Masaaki Shirakawa’s decision to boost purchases of real estate funds to stimulate the economy may spur debt sales by developers that reached the highest in 2 1/2 years this month.
Japan’s real estate investment trusts may stall property sales and suspend fundraising plans in the short term as the nation’s strongest earthquake , tsunami and nuclear crisis damp investor appetite for assets.
Mitsui Fudosan Co., Japan’s biggest developer by sales, rose to the highest since March 2011 after saying fiscal first-half profit gained 62 percent after opening two shopping centers in Tokyo and as home sales improved.