TOKYO: Japanese shares closed higher on Monday on optimism around domestic corporate earnings and an economic recovery in the US, although concerns about a potential $2 billion loss flagged by brokerage Nomura Holdings limited gains.

The Nikkei share average rose 0.71% to close at 29,384.52, while the broader Topix rose 0.46% to close at 1,993,34 after turning negative during the session.

Shares of Japan’s largest brokerage Nomura Holdings tumbled 16.33%, their biggest percentage fall since November 2011, after the company warned of the possible loss at a US subsidiary.

Nomura’s slump weighed on Topix the most, with Mitsubishi UFJ Financial Group, down 1.84%, and Sumitomo Mitsui Financial Group, down 1.07%, also pressuring the index. In a bright spot, tech shares advanced, with Tokyo Electron jumping 3.32%, Advantest rising 2.6% and Sony adding 1.75%. There were 120 advancers on the Nikkei index against 100 decliners.