Mitsui Fudosan Leads Japan Property Share Slump (Update2)

Mitsui Fudosan Leads Japan Property Share Slump (Update2).
Sept. 10 (Bloomberg) -- Mitsui Fudosan Co., Japan"s largest developer, dropped and the Topix real estate index reached its lowest in more than a year after U.S. jobs unexpectedly declined and Japan"s economy shrank more than forecast. Mitsui Fudosan Co. fell 125 yen, or 4.7 percent, to 2,550 yen as of much 1 p.m. in Tokyo. Mitsubishi Estate Co., the country"s second-biggest developer, fell 3.8 percent to 2,695 yen. The Topix real estate index dropped 4.2 percent to 1,626.63, the lowest since Aug. 8, 2006. Developers are set to suffer if Japan"s economic expansion ends at a time when corporate borrowing costs are rising across the globe. The three-month rate banks charge each other for dollars rose to a seven-year high last week in Europe. Japan"s economy shrank at a 1.2 percent annual rate in the three months ended June 30 as business spending slumped, the Cabinet Office said today.