Japan watchdog investigates Nomura

While the watchdog refused to say what the probe was about it comes as it carries out a high-profile investigation into insider trading among top Japanese firms.

A Nomura spokesman,who also declined to comment directly on details of the case,said 8220;it is true that we are under investigation,and we will fully cooperate with8230; their probe.8221;

The news pushed Nomura shares down 3.48 per cent to 332 yen in Tokyo trade.

Last month,Chuo Mitsui Asset Trust and Banking admitted that its staff had engaged in insider trading,with several reports fingering a Nomura employee as the one who leaked price-sensitive information.

Nomura has declined to comment on those allegations.

The case was tied to a planned share offer two years ago by energy firm Inpex Corp.

Chuo Mitsui sold Inpex shares worth 101 million yen USD 1.2 million about a week before the sale was announced,the regulator has said.

The firm later bought back the shares,reaping profits of about 14 million yen.

Regulators and Tokyo8217;s bourse started a probe several years ago over widespread allegations of insider trading in the shares of Japanese firms.