Japan REIT sector - BOJ policy and US REITs behind correction?
The Japanese REIT market has been weakening recently. The TSE REIT Index rose 5.6% between 4 January 2016 and the end of September, outperforming the TOPIX by 18%. From October through 7 November, however, the index fell 2.8%, underperforming the TOPIX by 5.2%. Major factors that could have played a part in this recent correction in the Japanese REIT market include (1) caution regarding the BOJ's yield curve control policy, and (2) the correction in the US REIT market amid increasing expectations for a rate hike by the Fed.