Nomura Holdings, Japan’s largest broker, on Tuesday reported an unexpected loss in the first quarter, reflecting continuing damage from the US subprime mortgage debacle and market turmoil.

The Japanese securities company unveiled a Y76.6bn ($708m) net loss in the three months to June, mainly because of additional provisions of Y63.1bn related to exposure to monoline insurers and writedowns related to investments. Revenues were down 60 per cent year on year at Y135.1bn, highlighting the global downturn in financial markets.