Nikkei slips as property firms down

The Nikkei share average slipped 0.56 percent on Monday as Sumitomo Realty & Development Co Ltd and other property firms were hit by concerns about higher interest rates at home and worries about the US subprime mortgage market.
Shares of chip-equipment firm Advantest Corp and other exporters helped stem the losses, rising as the yen remained near its lowest in 4-1/2 years against the dollar. Property companies, which are sensitive to higher borrowing costs, were sold on expectations the Bank of Japan is likely to raise rates in August. Investors were also wary after two Bear Stearns hedge funds were hit by steep losses on subprime mortgage bonds.
"I think global investors are lowering their weighting of property stocks, including real estate investment trusts, world-wide. Along with that, Japanese property stocks are being sold," said Soichiro Monji, chief strategist at the equity management department of Daiwa SB Investments. "Concerns about the American real estate market are likely weighing on sentiment, but in reality these stocks are being sold because of expectations of higher rates," Monji said.
The Nikkei finished down 101.15 points at 18,087.48. The broader TOPIX index fell 0.74 percent to 1,764.87. Trade activity hit its lowest in more than a week with 1.93 billion shares changing hands on the Tokyo exchange's first section.
Decliners beat advancers by a ratio of four to one. Real estate developer Sumitomo Realty fell 3.9 percent to 4,000 yen, becoming the single biggest contributor to the Nikkei's decline.
Mitsui Fudosan Co Ltd, Japan's largest realty developer, declined 2.8 percent to 3,430 yen. Second-ranked Mitsubishi Estate Co Ltd fell 2.4 percent to 3,330 yen. Chip-equipment maker Advantest and other exporters rose on expectations of higher profits after the yen remained near a 4-1/2-year low to the dollar.
A weak yen is a boon for companies that make the bulk of their sales abroad, as it boosts profits when earnings from abroad are brought home. Advantest, which makes nearly 70 percent of its sales overseas, rose 1.1 percent to 5,550 yen. Industrial robot maker Fanuc Ltd, which makes nearly 65 percent of its sales outside of Japan, gained 1.4 percent to 12,960 yen.
Shares of Nintendo Co Ltd finished down 0.8 percent in Osaka at 45,100 yen, after earlier hitting a record high of 46,350 yen. That briefly made the game maker the 10th-largest company in Japan by market capitalisation, just above Sony Corp, for the first time in its history.
Nintendo ended the day in 11th place, below Sony but above Panasonic maker Matsushita Electric Industrial Co Both companies have sales more than eight times larger than Nintendo's, and some participants questioned whether the game maker's run would continue.
"I do think a lot of Nintendo's strong earnings are factored in at this point," said Hideyuki Suzuki, manager of investment information at SBI Securities. Shares of Bull-Dog Sauce Co Ltd, a small maker of culinary sauces, fell 2.1 percent to 1,646 yen on the Tokyo exchange's second section.
Shareholders on Sunday approved a "poison pill" scheme that will allow the company to issue new shares aimed at thwarting a $260 million take-over attempt by US hedge fund Steel Partners.