The Tokyo equities markets were lower on Tuesday as investors took the opportunity to profit from recent gains in the markets. The Nikkei 225 dropped 1.1 percent to 16,776,88, while the Topix index was 1.2 percent lower to 1,645.40. The Mothers index of small caps was also lower, dropping 1.9 percent to 1,127.74.
The real estate sector suffered losses as investors expressed concerns over the whole sector in the wake of troubles for Misawa Homes, which dropped 18.3 percent to ¥357 on top of Monday’s losses. The declines came after it was reported over the weekend that one of Misawa’s subsidiaries had inflated sales figures during the past few years. The sector as a whole was 2.7 percent lower as Mitsui Fudosan fell 2 percent to ¥2,750, Sumitomo Realty & Development was down 3.1 percent to ¥3,730, and Mitsubishi Estate dropped 3.2 percent to ¥2,990.
In the securities sector, Nikko Cordial was having troubles of its own as the brokerage was the target of an investigation amid allegations that it had overstated its earnings. With the threat of being delisted from the Tokyo Stock Exchange hanging over its head, orders to sell, down 14.1 percent at ¥1,219, vastly outnumbered buy orders. The stock did not trade on the day and analysts were doubtful that it would trade on Wednesday, either.