10 Best Japanese Stocks To Buy Now

05. Nomura Holdings, Inc. (NYSE:NMR)

Number of Hedge Fund Holders: 13

Nomura Holdings, Inc. (NYSE:NMR) is a key player in Japan’s financial sector, making it an essential pick for inclusion in the best Japanese stocks list. As Japan’s largest investment bank and a global leader in wealth management and financial services, Nomura Holdings, Inc.’s (NYSE:NMR) performance in the first quarter of fiscal year 2025 reflects its strong fundamentals and strategic growth, solidifying its position as an attractive stock for investors.

For Q1 FY2025, Nomura Holdings, Inc. (NYSE:NMR) reported solid financial results, with group-wide net revenue rising by 2% quarter-over-quarter to ¥454.4 billion. This steady increase was driven by diversified revenue streams and a growing client base across its core segments. Pre-tax income surged by 12% to ¥102.9 billion, while net income saw an impressive 21% growth, reaching ¥68.9 billion. This marks the fifth consecutive quarter of earnings momentum, showcasing Nomura Holdings, Inc. (NYSE:NMR) ability to navigate a complex financial environment. Earnings per share (EPS) stood at ¥22.36, while the annualized return on equity (ROE) reached 8.1%, positioning the company well on its path to achieve its 2030 goal of consistently delivering an ROE between 8% and 10%.

The wealth management segment, in particular, had a standout quarter. Net revenue in wealth management grew by 5% to ¥114 billion, while income before taxes increased by 9% to ¥42.3 billion, the highest level in nine years. This growth was fueled by a shift in client behavior from savings to investment, with recurring revenue reaching a record high of ¥45.8 billion. Total sales, including stocks, investment trusts, and insurance products, also surged, with stock sales totaling ¥4.8 trillion.

Nomura Holdings, Inc. (NYSE:NMR) asset management business continued its upward trajectory, reporting record-high assets under management (AUM) of ¥92.5 trillion by the end of June 2024. This marked the sixth consecutive quarter of record AUM growth, with ¥950 billion in net inflows, primarily driven by U.S. high-yield bonds and global stock funds.

Despite challenges in the wholesale segment, Nomura Holdings, Inc. (NYSE:NMR) demonstrated resilience, with 2% growth in global markets revenue and strong performance in fixed income and securitized products. Overall, Nomura Holdings, Inc. (NYSE:NMR) diversified revenue base, strong asset management growth, and strategic focus on client needs make it a compelling choice for investors seeking exposure to Japan’s dynamic financial markets.