A rush of sell orders for Nomura Holdings hammered down the Japanese financial sector Friday after the Japanese brokerage house announced its second large share offering in six months, reigniting concerns about equity dilution.
In Tokyo, the Nikkei 225 plunged 278.24 points, or 2.6%, to finish the week at 10,265.98, underperforming regional markets by a wide margin.
In Hong Kong, the Hang Seng index lost 26.33 points, or 0.1%, to 21,024.40.
Nomura announced late Thursday that it planned to offer about 800 million new shares, equivalent to about 29% of its outstanding shares. Analysts expect Nomura to use the $5.7 billion U.S. proceeds raised from the offering to grow its business, rather than as a protection against future losses.
Japan's largest brokerage bought European and Asian operations of the failed Lehman Brothers, but lost a bid to acquire the bankrupt company's U.S. businesses to Barclays.
Still, the expansion plans didn't help Nomura in Friday's trading in Tokyo. In a thinly traded session, the stock, which was ask-only for most part of the session, ended 15.9% lower. That marked its eighth successive decline and its worst single-day percentage fall in at least a year.
Nomura's tumble applied pressure to most other financial shares in Tokyo, with Daiwa Securities Group shrinking 5.3%, Mizuho Financial Group skidding 4.4%, Mitsubishi UFJ Financial Group sliding 5.4% and Mitsui Sumitomo Insurance Group Holdings falling 3.4%.
Elsewhere:
Shanghai’s 300 Composite Index backtracked 22.40 points, or 0.7%, to 3,058.53.
South Korea’s Kospi index slid 2.40 points, or 0.1%, to 1,691.48.
Taiwan’s Taiex gained 21 points, or 0.3%, to 7,345.22
Singapore’s Straits Times index fell back 2.40 points, or 0.2%, to 2,662.82
New Zealand’s NZX 50 Index jettisoned 19.10 points, or 0.6%, to 3,111.25
Australia’s S&P/ASX 200 regained 12.10 points, or 0.3%, to 4,713.30
