* News of Nomura share sale batters financials
* Commodities fall hits trading firms
* JAL tumbles as woes continue
By Elaine Lies
TOKYO, Sept 25 (Reuters) - Japan's Nikkei stock average slid
2.9 percent on Friday, as financial shares were hit hard after
Nomura Holdings <8604.T> said it plans to issue up to $5.6
billion in shares, raising fears other banks could follow suit.
Nomura shares were untraded due to a glut of sell orders
after the announcement by Japan's largest broker, with investors
appearing to focus on the negative technical impact of the step
on Nomura's shares instead of the positive implications for the
company's business operations. [] []
But losses were broad-based, with trading houses hit by
falling commodity prices and exporters hit as the yen advanced
against the dollar.
"Today's fall (in financial stocks) is largely because
Nomura suddenly announced that it would raise new capital," said
Soichiro Monji, chief strategist at Daiwa SB Investments.
"While the overall market is down, that's what's behind the
additional fall in financial stocks."
Analysts say Nomura's offering, which would boost the number
of its outstanding shares by about 30 percent, could signal
another round of fundraising by Japanese banks in the face of a
global regulatory push for banks to carry bigger capital buffers
to prevent another crisis.
The G20 grouping of rich and developing countries, currently
meeting in Pittsburgh, has been pushing for global banks to boost
their capital, in particular calling for issues of common shares.
[] []
The benchmark Nikkei <> lost 305.17 points to 10,239.05,
while the broader Topix <> fell 3.1 percent to 920.65.
The Nomura news hit a sector already made jittery by a string
of events, including financial services minister Shizuka Kamei's
interest in introducing a moratorium on the repayment of the
principal on mortgages and bank loans to help small and midsize
businesses. []
"There's a lot of concerns about the financial system here
right now, and the general atmosphere isn't so good," said
Noritsugu Hirakawa, a strategist at Okasan Securities.
An overnight fall on Wall Street, fed by worries that
authorities might be curbing stimulus measures too soon, saw the
S&P 500 <.SPX> hit by its worst two-day drop in three weeks and
also weighed on sentiment.
World central banks said they would scale back infusions of
U.S. dollars into their banking systems, fuelling unease
triggered a day earlier when stocks sold off following the U.S.
Federal Reserve's decision to slow purchases of mortgage debt --
a key pillar of its efforts to support mortgage lending.
[]
But Japanese market players said the impact was limited.
"We need to see actual figures before this will really
matter. Just a statement itself means little," said Tomomi
Yamashita, a fund manager at Shinkin Asset Management.
FINANCIALS FALTER
Nomura was untraded, with its price indicated at 573 yen --
down 15.9 percent from Thursday's close -- after announcing the
share sale, its second since it bought the European and Asian
operations of Lehman Brothers, targeting investments and tighter
capital requirements. []
"Given that this is their second large-scale share sale this
year, serious concerns about dilution are inevitable," said
Okasan's Hirakawa.
Mitsubishi UFJ Financial Group <8306.T> lost 6.1 percent to
495 yen, while Sumitomo Mitsui Financial Group <8316.T> fell 5.2
percent to 3,130 yen. Mizuho Financial Group <8411.T> lost 4.9
percent to 175 yen.
The securities subindex <.ISECU.T> tumbled 10.8 percent,
becoming the biggest loser among the subindexes, while the
banking subindex <.IBNKS.T> lost 4.5 percent.
Japan Airlines <9205.T> was battered after it pleaded on
Thursday for a government bailout, though the new transport
minister held back his support on concerns the carrier's
cost-cutting plans would not be enough. []
The transport ministry said on Friday it has launched a
special team to draw up restructuring plans for JAL by the end of
November after the struggling carrier's own plans failed to
satisfy government officials.
JAL shares lost 5.6 percent to 136 yen.
Trading houses tumbled after copper fell to a one-month low
in New York on Thursday and oil fell 4.5 percent.
Itochu Corp <8001.T> lost 5.6 percent to 627 yen and
Mitsubishi Corp <8058.T> fell 3.7 percent to 1,891 yen.
Trade was active on the Tokyo exchange's first section, with
995 million shares changing hands, above last week's morning
average of 909 million.
Declining stocks outnumbered advancing ones by more than 11
to 1.
(Additional reporting by Tokyo newsroom; Editing by Joseph
Radford)
