Nomura fell hard on the Tokyo stock exchange on Monday. Japan’s largest securities house warned of a possible $ 2 billion loss at its US arm from transactions with an unnamed client in the United States.
The mood on the Japanese stock exchange was nevertheless positive. Investors pulled in on Friday’s new record levels on Wall Street. US President Joe Biden’s promises to increase infrastructure investment and accelerate the corona vaccination program have fueled optimism about the economic recovery.
The Nikkei in Tokyo finished 0.7 percent higher at 29,384.52 points. Nomura plummeted nearly 17 percent, suffering the most significant share price loss in ten years. The financial group announced that it would stop issuing more than $ 3 billion in bonds due to the United States’ expected loss.
The announcement followed a series of so-called block sales on Wall Street last Friday that led to price declines at several companies. According to Reuters news agency, these sell orders came from large parcels of shares of hedge fund Archegos Capital Management, a client of Nomura.
In Hong Kong, the Hang Seng index was 0.6 percent in the minus the meantime. The Chinese video platform Bilibili had a disappointing stock market debut in Hong Kong. The share was traded almost 3 percent lower compared to the introductory price.
Chinese tech stocks have been under pressure for some time now over fears of stricter regulations from Beijing and more rigid US rules, leading Chinese companies to lose their Wall Street listings.