Nomura, Daiwa Climb Most Since October as Market Rebounds

Nomura Holdings Inc. (8604) and Daiwa Securities Group Inc. (8601) rose the most in more than two months on speculation that a financial-market recovery will help revive business at Japan’s biggest securities firms.

Nomura climbed 6.9 percent to 249 yen at the close of the first day of trading this year on the Tokyo Stock Exchange. Daiwa jumped 4.6 percent to 251 yen. Both advances were the biggest since Oct. 27.

Japan’s benchmark Topix index rose 2 percent, also the steepest gain since Oct. 27, after reports in the U.S. and Germany added to signs the global economy is weathering Europe’s sovereign debt crisis. Nomura probably returned to pretax profit in the three months ended Dec. 31, Kouichi Niwa, an analyst at SMBC Nikko Securities Inc. in Tokyo, wrote in a report.

“Return reversal is expected in the market and that’s supporting the stocks, which fell last year,” said Hideyuki Suzuki, Tokyo-based manager of investment market research at SBI Securities Co., a unit of financier SBI Holdings Inc.

Nomura tumbled 55 percent in 2011 and smaller rival Daiwa slid 43 percent as the Tokyo-based firms posted losses from operations abroad and equity underwriting business shrank following the country’s record earthquake.

To contact the reporter on this story: Takako Iwatani tiwatani@bloomberg.net

To contact the editors responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net; Makiko Asai masai@bloomberg.net

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