Asia-Pacific Markets Rise Ahead of Christmas as Honda and Nissan Consider Merger
Asia-Pacific markets started the holiday-shortened Christmas week on a positive note, with investors awaiting the official announcement related to the merger of Japanese automakers Honda and Nissan. The companies, which aim to reach a “final agreement” in June 2025, are considering setting up a new holding company by summer of 2026 with a Honda executive leading it, NHK said.
The presidents of Honda, Nissan, and Mitsubishi have informed Japan’s industry ministry about entering into merger talks, Kyodo News reported. They are expected to hold a press conference Monday afternoon to discuss entering into full-scale discussions toward a business integration, and then sign a memorandum of understanding.
Honda shares rose 2.11%, while Nissan shares slipped 0.74%. The news came after Nissan shares saw a record surge last Wednesday, following a media report that the struggling Japanese automaker was looking to merge with Honda.
Cooler-than-expected U.S. inflation data on Friday also helped boost the broader Asia market. Japan’s Nikkei 225 climbed 1.06%, while the Topix was 0.79% higher. South Korea’s Kospi gained 1.25%, and the small-cap Kosdaq rose 1.51%. Australia’s S&P/ASX 200 advanced 1.03%. Hong Kong’s Hang Seng index rose 0.72%, while mainland China’s CSI 300 was flat.
In the U.S., all three major indexes climbed on Friday, with the Dow Jones Industrial Average gaining 1.18%, the S&P 500 adding 1.09%, and the Nasdaq Composite advancing 1.03%. The personal consumption expenditures price index, the Fed’s preferred inflation gauge, accelerated to 2.4% in November from 2.3% the previous month, but was still lower than the 2.5% estimate from Dow Jones. Excluding food and energy, core PCE rose 2.8% from a year ago, slightly below expectations of 2.9%.
