PRE-MARKET JAPANESE AND SOUTH KOREAN STOCKS NEWS: Mitsubishi Electric (6503 JT), Rohm (6963 JT) and Toshiba, will begin negotiations to merge their power semiconductor businesses
JAPAN
All Nippon Airways (9202 JT) - Co. is among Japanese firms turning to bond-type shares, which offer similar benefits to common stock without diluting shareholdings. (Nikkei)
Japan Display (6740 JT) – Co. is said to be in talks with Micron Technology (MU) over the sale of its LCD panel plant in Japan. (Nikkei)
Mizuho Financial Group (8411 JT) - Co., via its subsidiary Asset Management One, has partnered with Sparx Asset Management to develop investment trusts targeting Indian equities, focusing on small- and mid-cap opportunities. (Nikkei)
Mitsubishi Electric (6503 JT) - Co., alongside Rohm (6963 JT) and Toshiba (6502 JT), will begin negotiations to merge their power semiconductor businesses. (Nikkei)
Energy - Japan’s government will temporarily lift restrictions on coal-fired power plant operations to reduce the risk of an energy shortage amid Middle East supply disruptions via the Strait of Hormuz. (Nikkei)
SOUTH KOREA
Korea Aerospace Industries (047810 KS) - Co. is advancing KF-21 export efforts and is nearing a deal with Indonesia, while there is increased interest from the Middle East and Southeast Asia as production capacity expands. (ChosunBiz)
Sanil Electric (062040 KS) - Co. is expected to be re-rated as a data centre beneficiary through transformer orders linked to data centre demand, according to SK Securities. (ChosunBiz)
SK Hynix (000660 KS) - Co. recorded an impairment on Gauss Labs. (ChosunBiz)
Energy - South Korea to expand temporary fuel tax cuts to 15% on gasoline (prev. 7%) and 25% on diesel (prev. 10%) to ease cost pressures amid the prolonged Middle East conflict. (Yonhap)
Other News
South Korea is to conduct a KRW 5tln emergency sovereign bond buyback to stabilise markets and curb rising yields amid volatility linked to the Middle East conflict. (Nikkei)
The proposed merger of Mitsubishi Electric, Rohm, and Toshiba's power semiconductor businesses marks a significant consolidation in the sector, potentially enhancing their competitive position amid rising global demand for semiconductors. The strategic alignment could bolster innovation and operational efficiencies, impacting not just the companies involved but also the broader semiconductor landscape. Traders should monitor potential regulatory hurdles and the reaction of peer organizations, which may influence market positioning in the technology sector.