While this was an abrupt drop, even if the Nikkei had broken under 15,000 it would have been a fall of around 10 percent. I think that is a completely natural correction.

This fiscal year should be fine, but the question will be how they do in the next fiscal year. Their share prices are low but the China (supply glut) issue is a big concern.

Given the size of Nomura's business, it's not much of a surprise the earnings came in like this. I'm more concerned about whether Nomura can recoup the money it's spent expanding in investment banking, including overseas.

Buying momentum for stocks is shrinking. Overseas investors are pulling their money out of Japanese equities now as they are worried about the impact of interest rate hikes on the U.S. economy.

The fall in freight rates is dragging down their bottom lines. Nonetheless, their stocks' low valuations will somehow attract investors.

There is no surprise in the results.