Investing.com — Asian stocks mostly rose on Monday, tracking gains on Wall Street after weak U.S. inflation data boosted bets that interest rates will still fall next year.
Japanese stocks were among the best performing stocks today, supported by speculation about a possible merger between them Honda (NYSE:) and Nissan (OTC:), where reports said a deal was close.
Regional markets received positive signals from Wall Street, which rose on Friday after data – the Fed's preferred measure of inflation – came in weaker than expected for November. The reading helped ease some concerns that US interest rates will fall at a slower pace in 2025, especially after the Federal Reserve took a hawkish tone during last week's meeting.
US stock futures rose in Asian trading, also supported by optimism about the US government avoiding a shutdown.
Japanese stocks rise on reports of Honda and Nissan merger
The Japanese and Japanese indices rose 0.9% and 0.5%, respectively.
The gains in Japanese markets came amid increased focus on Honda Motor Co Ltd (TYO:) and Nissan Motor Company Limited (TYO:), after a report from public broadcaster NHK said a preliminary agreement would be signed later on Monday, with the aim of finalizing the terms of the merger by June 2025.
Honda shares rose by about 2%, while Nissan shares fell slightly after rising about 20% last week. Mitsubishi Motors Company (TYO:), which could also be drawn into the merger, rose 2.8%.
The merger has the potential to create the third-largest global automaker by sales, and is seen as a clash between Honda and Nissan as competition increases and sales decline, especially in China's largest auto market.
Aside from merger speculation, the focus in Japanese markets was also on key November inflation data released on Friday. The reading showed that inflation rose more than expected in November, keeping expectations of a rate hike by the Bank of Japan in place.
Asian stocks rise with focus on US interest rates and Chinese stimulus
Broader Asian markets rose on Monday on optimism about weak inflation in the United States, although most regional markets were still reeling from the previous week's losses.
The Australian index rose 1.2%, with local shares of News Corp (ASX:) (NASDAQ:) rising 2.2% after the company said it would sell television broadcaster Foxtel to British sports group DAZN in a deal worth A$3.4 billion (2.1 billion dollar).
China and its indexes rose 0.6% and 0.2%, respectively, while the Hong Kong index added 0.5%.
Chinese markets achieved some gains in recent sessions after Beijing provided more assurances that it will increase fiscal spending in 2025 to support economic growth.
South Korea's index added 1.5% and was the best performer in the region, as investors bought heavily discounted stocks after local markets were hit by growing political uncertainty earlier this month.
The Singapore index rose 1.1%. TOKMED GROUP LIMITED (SGX:) rose nearly 6% after receiving an offer to take it private.
SINGAPORE POST LIMITED (SGX:) fell 8% after it fired its CEO Phang Heng Wee over alleged misconduct.
India's index indicated a slightly positive opening, after the index fell sharply during the previous week.
