UPDATE 1-BOJ buys REIT, finishes rollout of asset buying fund

(For more stories on the Japanese economy, click [ID:nECONJP])

* BOJ buys 2.2 bln yen in J-REITs on Thursday

* Follows purchase of 14.2 bln yen in ETFs on Wednesday

By Leika Kihara

TOKYO, Dec 16 (BestGrowthStock) – The Bank of Japan on Thursday made
its first purchase of real estate investment trusts, completing
the rollout of its asset buying scheme launched in October that
aims to push down risk premium and corporate borrowing costs.

The central bank said it bought 2.2 billion yen ($26 million)
in Japanese real estate investment trusts (J-REIT) on Thursday,
the first time for it to do so in its history.

It follows the purchase on Wednesday of 14.2 billion yen in
exchange-traded funds (ETF) under the asset buying programme, put
in place as part of its monetary easing steps in October.

Under the programme, the BOJ pledged to buy up to 5 trillion
yen in assets ranging from government bonds to corporate debt,
including J-REITs and ETFs, by the end of next year.

The central bank hopes that its unconventional step of buying
private risk assets will draw more investors and money into these
markets.

Investors indeed have been piling into the J-REIT market with
the Tokyo Stock Exchange’s REIT index (.TREIT: ) having surged
since the BOJ unveiled the asset buying plan.

The BOJ has said it will buy up to 50 billion yen of J-REITs
rated at least AA, which denote very high creditworthiness. It
will also purchase up to 450 billion yen of ETFs, along with
corporate bonds, commercial paper and government debt.
(Editing by Chris Gallagher)

UPDATE 1-BOJ buys REIT, finishes rollout of asset buying fund