PRE-MARKET JAPANESE AND SOUTH KOREAN STOCKS NEWS: Automakers' sales updates

PRE-MARKET JAPANESE AND SOUTH KOREAN STOCKS NEWS: Automakers' sales updates

• Japanese automakers face mixed sales results, with Honda impacted by semiconductor shortages and Toyota seeing growth in North America.
• South Korean tech giants Samsung and SK Hynix implement significant price hikes for DRAM supplies.
• Strategic partnerships and innovations emerge in South Korea, with Shinsegae collaborating with Alibaba and Hyundai's Boston Dynamics advancing robotics.

Japanese automakers are navigating a challenging landscape marked by supply chain disruptions and varying sales performances. Honda (7267 JT) is extending the suspension of operations at three Chinese factories due to a shortage of automotive semiconductor devices. This highlights ongoing supply chain vulnerabilities that continue to affect the automotive sector globally. In contrast, Toyota (7203 JT) reported an 8% year-on-year increase in North American sales, surpassing 2.5 million units, indicating robust demand in that market.

Other Japanese automakers are experiencing declines. Mazda (7261 JT) reported an 18.9% year-on-year drop in December sales in North America, while Nissan (7201 JT) saw a 15% decrease in new vehicle sales in Japan, marking the lowest level since records began in 1993. Subaru (7270 JT) also faced a 7.2% year-on-year decline in sales in America. Mitsubishi Motors (7211 JT), however, showed a slight improvement with North American Q4 sales rising to 21,354 units from 19,647 units in Q3.

In South Korea, Hanwha Corp (000880 KS) has initiated solar panel recycling at its US unit, reflecting a growing focus on sustainability. Hyundai Motor's (005380 KS) Boston Dynamics unit unveiled a humanoid robot designed for manufacturing plants, set to be operational by 2028, showcasing advancements in automation and robotics.

Samsung Electronics (005930 KS) and SK Hynix (000660 KS) are reportedly sticking to quarterly contracts and have implemented a 60-70% quarter-on-quarter increase in DRAM supply prices for Q1. This move could impact the tech sector, particularly for PC and smartphone manufacturers reliant on DRAM components.

Shinsegae (004170 KS) has entered into a partnership with Alibaba (9988 HK) to expand overseas sales channels for South Korean sellers, potentially enhancing market access and competitiveness.

Geopolitically, South Korean President Lee and Chinese President Xi have expressed the importance of resuming talks with North Korea, while North Korean leader Kim Jong-un inspected a memorial for soldiers who died in Russia’s war against Ukraine, indicating ongoing regional tensions.

Trader Insight:

• Traders are monitoring Honda (7267 JT) and other Japanese automakers for potential impacts from semiconductor shortages.
• Market participants are assessing Toyota (7203 JT) for continued strength in North American sales.
• Observers are watching Samsung Electronics (005930 KS) and SK Hynix (000660 KS) for the effects of DRAM price hikes on tech stocks.
• Some traders may consider Shinsegae (004170 KS) and Alibaba (9988 HK) for potential growth from expanded sales channels.

Disclaimer: This is not trading advice. For informational purposes only.