Japanese shares end higher; Nomura plunges on flagging $2 bln loss
TOKYO, March 29 (Reuters) - Japanese shares closed higher on Monday on optimism around domestic corporate earnings and an economic recovery in the U.S., although concerns about a potential $2 billion loss flagged by brokerage Nomura Holdings limited gains.
The Nikkei share average .N225 rose 0.71% to close at 29,384.52, while the broader Topix .TOPX rose 0.46% to close at 1,993,34 after turning negative during the session.
Shares of Japan's largest brokerage Nomura Holdings 8604.T tumbled 16.33%, their biggest percentage fall since November 2011, after the company warned of the possible loss at a U.S. subsidiary. were concerned there will be more financial institutions that could be hurt by similar losses and that impacted investor appetite," said Hideyuki Ishiguro, senior strategist, Daiwa Securities.
Worsening sentiment, Credit Suisse CSGN.S also said its first-quarter results could suffer a material impact after the bank started exiting positions after a U.S.-based hedge fund defaulted on the margin calls it made. slump weighed on Topix the most, with Mitsubishi UFJ Financial Group 8306.T , down 1.84%, and Sumitomo Mitsui Financial Group 8316.T , down 1.07%, also pressuring the index.
In a bright spot, tech shares advanced, with Tokyo Electron 8035.T jumping 3.32%, Advantest 6857.T rising 2.6% and Sony 6758.T adding 1.75%.
"Investors are buying companies, particularly manufacturers that would benefit from the recovery of the global economy, and whose earnings are set to rise in the coming years," said Shigetoshi Kamada, general manager for the research department of Tachibana Securities.
Nikkei heavyweight Fast Retailing 9983.T , an operator of the Uniqlo brand clothing shops, rose 0.86%.
The stocks that gained the most among the top 30 core Topix names were Kao 4452.T up 3.02%, followed by Daikin Industries 6367.T , up 2.79%.
Nikkei heavyweight SoftBank Group 9984.T , down 1.71%, was one of the worst performers among the top 30 Topix names.
There were 120 advancers on the Nikkei index against 100 decliners.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or