Japan's securities watchdog said on Friday that it was seeking a fine against Hong Kong-based Areion Asset Management, accusing it of manipulating a company's share price.

The Securities and Exchange Surveillance Commission has recommended that the Financial Services Agency fine Areion 430 million yen ($3.6 million), it said in a statement.

The SESC said Areion had placed large buy orders for shares of Nitto Denko Corp just before the market close on Sept. 25 last year with the purpose of inducing sale and purchase of securities by others for those shares.

"These constituted a series of sale and purchase of securities and entrustments that would mislead others into believing that sale and purchase of the shares were thriving and would cause fluctuations in prices of the shares," the SESC said.