Japan property shares rally after Joint's rescue deal

TOKYO, Sept 9 (Reuters) - Buyers snapped up shares in Japanese property developers and apartment builders on Tuesday as Orix Corp's (8591.T) deal to help Joint Corp 8874.T fanned hopes that other struggling developers might also win financial support to avoid bankruptcy.

Growing investor pessimism over property firms' business outlook had sent shares in the sector tumbling in the past few months.

Joint's shares went untraded, with a glut of buy orders at 241 yen, up 50 yen -- its daily limit -- or 26 percent from Monday's close of 191 yen.

"The (Joint) deal is surely prompting buying back," said Yutaka Kakizaki, a real estate analyst from Chibagin Asset Management.

Joint said after the market closed on Monday it would sell 10 billion yen worth of shares to Orix, the country's biggest general leasing company. The deal makes Orix the top shareholder in Joint with a 39 percent stake and comes as Joint struggles to find ways to improve its financial base. [ID:nT260362]

Among other property sector stocks, Creed Corp 8888.T shot up 15 percent and Land Co (8918.T) gained 14 percent.

Other property shares also got a lift after being sold heavily in the past few months, especially after developer Urban Corp 8868.T failed in August in the biggest collapse of a listed Japanese company in six years.

Still, Kakizaki said players should not be too optimistic about the sector's outlook as many developers may yet have a tough time finding financial supporters.

"The reality is that many funds are still cash-short and they would prefer to invest in less risky defensive deals. Even if developers seek assistance, not many (funds or companies) would raise their hands" to help them, Kakizaki said. (Reporting by Mariko Katsumura; Editing by Hugh Lawson)