Japanese shares end higher; Nomura plunges on flagging $2 bln loss

Kao

29/03/2021 08:03

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.  urn:newsml:reuters.com:*:nL1N2LR00H 
    "Investors 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.  urn:newsml:reuters.com:*:nL8N2LR0LD
    Nomura's 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. 

 
    


 (Reporting by Junko Fujita; Editing by Amy Caren Daniel)
 ((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters
Messaging:junko.fujita.reuters.com@reuters.net;))