Asia report: Markets mixed, Nomura slides on US profit warning

Markets in Asia finished in a mixed state on Monday, with financial holding firm Nomura plunging in Tokyo after it said its US operation was looking to have made a loss of $2bn.

In Japan, the Nikkei 225 was up 0.71% at 29,384.52, as the yen strengthened 0.06% against the dollar to last trade at JPY 109.57.

Technology conglomerate SoftBank Group was down 1.71%, while among the benchmark’s other major components, robotics specialist Fanuc was up 1.34% and fashion firm Fast Retailing added 0.86%.

Nomura shares plummeted 16.33% after the financial services group said its US subsidiary was facing a potential loss of $2bn.

The company also cancelled a bond issue that it had priced earlier in the month.

“Nomura is currently evaluating the extent of the possible loss and the impact it could have on its consolidated financial results,” the board said in its statement.

The broader Topix index gained 0.46% in Tokyo, to close its trading session at 1,993.34.

On the mainland, the Shanghai Composite was up 0.5% at 3,435.30, and the smaller, technology-heavy Shenzhen Composite was 0.18% firmer at 2,218.79.

South Korea’s Kospi slipped 0.16% to 3,036.04, while the Hang Seng Index in Hong Kong eked out gains of 0.01% to finish the day at 28,388.30.

China-focussed video sharing platform Bilibili closed down 0.99% on its debut day in the special administrative region, having earlier slid almost 7% from its issue price.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics up 0.12%, while SK Hynix slid 2.22%.

Oil prices were lower at the end of the Asian day, with Brent crude last down 0.47% at $64.27 per barrel, and West Texas Intermediate off 0.72% at $60.53.

In Australia, the S&P/ASX 200 lost 0.36% to 6,799.50, while across the Tasman Sea, New Zealand’s S&P/NZX 50 managed gains of 0.16% to 12,368.13.

The down under dollars were in a mixed state against the greenback, with the Aussie last 0.14% stronger at AUD 1.3082, while the Kiwi weakened 0.04% to trade at NZD 1.4301.