The Japanese and other Asian markets reacted positively to better than expected employment data coming from the US last month. Tokyo’s Nikkei 225, the largest market in the region, expanded by 3.8 percent to reach 13,363.18. Also influencing the Asian markets were promises from the Japanese prime minister that he was introducing tax reductions.
The price of a barrel of oil was sustained above $96 as investors’ fears that the US Federal Reserve would end its economic stimulus program were reduced.
The US Labor Department announced that the United States, which is still the world’s largest economy, added 175,000 jobs to its economy in May, about 10,000 more than had been predicted.
“The relief from U.S. jobs was palpable,” said Mizuho Corporate Bank in a report. It said gains were “gentle enough to avert concerns” that the Fed might be tempted to halt its “quantitative easing.”
Chief Executive of Nomura Holdings Inc, Koji Nagai promises to bring back the company’s international division to profitability by March of 2015, according to an announcement Nagai made on Tuesday.
The direction the chief wishes to take will refocus its business model on the Asian market while responding more to the needs of their clients. Nomura is one of the top brokerage houses in Japan.
Due to the paradigm shift Nomura will be forced to set aside its other goal of becoming a global investment bank since the firm’s management will need to cut costs by approximately $1 billion. Nagai insisted however that Nomura intends to remain a global player.
“Our customer’s needs are strongly spreading outward and we need to stay global,” said Mr. Nagai.
Expectations are high for the company’s various regions to be bringing in profits by the fiscal year which ends in March of 2015. The company has a pre-tax goal of 50 billion yen ($639 million) at its offshore operations by March of 2016.
“We’ve been saying we want to become an investment bank centered on Asia, but I don’t think we’ll make huge profits there right away at all.”