The real estate sector took a hit in Tokyo Wednesday, with the exchange’s properties sector index dropping 4.2 percent on the session on overvaluation concerns.
The declines helped send the Nikkei 225 down 1.6 percent to 16,158.45, while the Topix index dropped 1.71 percent to 1,569.47.
The Mothers market fell 2.23 percent to 717.07.
Among properties groups, Mitsubishi Estate (TYO: 8802) was 3.8 percent lower to ¥2,895 and Mitsui Fudosan (TYO: 8801; NAS: MDSFF) dropped 4.1 percent to ¥2,780.
In a related sector, Daiwa House Industry (TYO: 1925) was 3.2 percent lower to ¥1,471 after its chairman said that it wants to cut costs locally, where it fears land prices could collapse, and expand in China.
Banks were also lower.
Sumitomo Mitusi Financial Group (TYO: 8316) fell 1.5 percent to ¥872,000, its lowest share price in two years, while Mizuho Financial Group (TYO: 8411; NYSE: MFG) dropped 2.4 percent to ¥702,000.
There were gainers on the session.
Sony (TYO: 6758; NYSE: SNE) was 2.3 percent higher to ¥5,740 on the news that it is planning an IPO of its financial unit in Tokyo next month.
Meanwhile, new department store chain J-Front Retailing (TYO: 3086), created by the merger of Daimaru (TYO: 8234) and Matsuzakaya (TYO: 8235), added 6 percent to ¥975 when Goldman Sachs (NYSE: GS) initiated coverage with a “buy” recommendation and a target share price of ¥1,200.