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.
In Japan, the Nikkei 225 index hiked 459.44 points, or 1.2%, to 39,161.34.
In Hong Kong, the Hang Seng regained 162.43 points, or 0.8%, to 19,888.13.
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 Monday. They are expected to hold a press conference Monday afternoon, according to a Google translation of the report in Japanese.
Honda and Nissan are expected to hold board meetings Monday “to discuss entering into full-scale discussions toward a business integration, and then to sign a memorandum of understanding,” according to public broadcaster NHK.
Shares of Honda were 3.82% up, while Nissan shares saw a smaller gain of 1.58%.
Nissan shares saw a record surge last Wednesday, following a media report that the struggling Japanese automaker was looking to merge with Honda.
In other markets
In Shanghai, the CSI 300 regrouped 5.83 points, or 0.2%, to 3,933.57.
In Taiwan, the Taiex restored 594.29 points, or 2.6%, to 23,104.54
In Korea, the Kospi index spiked 37.86 points, or 1.3%, to 2,442.01
In Singapore, the Straits Times Index restocked 32.4 points, or 0.9%, at 3,752.33
In New Zealand, the NZX 50 gained 83.92 points, or 0.7%, to 12,988.03.
In Australia, the ASX 200 surged 134.62 points, or 1.7%, to 8,201.58.