Real Estate
Japan Homebuilders With US Exposure May See Boost From Election
- Homeownership becomes key US issue for both political parties
- Lower borrowing costs likely to support housing demand
A new house under construction in Inzai City, Chiba Prefecture, Japan.
Photographer: Akio Kon/BloombergShares of Japanese housing-related companies with exposure to the US may benefit from the presidential election and interest rate cuts, keeping them ahead of the broader equity market in Tokyo.
Home builders that get more than a 10th of their revenue from the US — Sumitomo Forestry Co., Nichiha Corp. and Sekisui House Ltd. — have surged an average of 29% this year, beating an 8.9% advance in the Topix. Japan’s construction shares as a whole are up 16%, recovering almost all of their losses since the stock market had its worst rout in decades in early August.