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Thursday, October 7, 2010

Japan's Topix up 0.2 pct, property strong after BOJ rate cut

TOKYO, Oct 7 (Reuters) - Japan's Topix index inched up on
Thursday, supported by rises in property and financial shares
after the Bank of Japan's monetary easing this week, but gains
were capped by profit-taking and persistent strength in the yen.

Shares of banks and brokerages got a shot in the arm after
the central bank on Tuesday cut interest rates to virtually zero
and pledged to pump more funds into the struggling economy.

The BOJ also said it would set up a 5 trillion yen ($60
billion) fund to buy a wide range of assets including Japanese
real estate investment trusts (J-REITs) -- which has bolstered
property stocks.


"Market sentiment has been boosted since the BOJ took a big
step in dealing with deflation at home. Its plan to purchase
Japanese real estate investment trusts and exchange-traded funds
is having an impact," said Tsuyoshi Segawa, an equity strategist
at Mizuho Securities.

PROPERTY, FINANCIAL SHARES STRONG

Mitsubishi Estate (8802.T) rose 2.2 percent to 1,508 yen,
adding to gains of more than 4 percent made on Wednesday, and
Sumitomo Realty & Development (8830.T) climbed 1.7 percent to
1,873 yen, after jumping about 5 percent the previous day.

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