Japanese Brokerages Struggle With Volatility Even Before Tariffs

Daiwa Securities Group Inc.’s profit slumped while SMBC Nikko Securities Inc. fell into the red as stock and bond trading revenue at the two Japanese brokerages dropped even before this month’s market turmoil.

Net income at Daiwa tumbled 24% year-on-year to ¥30 billion ($208 million) in the three months ended March 31, according to a statement Monday. That marked the first decline in eight quarters, and was in line with analysts’ estimates.