PRE-MARKET JAPANESE AND SOUTH KOREAN STOCKS NEWS: LG Energy Solution (37322 K...

** PRE-MARKET JAPANESE AND SOUTH KOREAN STOCKS NEWS: LG Energy Solution (37322 KS) announced cancellation USD 6.5bln EV battery-supply deal with Ford (?? US) following automaker's notice to halt production of some EV models**

• LG Energy Solution's cancellation of a $6.5 billion EV battery-supply deal with Ford highlights potential disruptions in the EV supply chain.
• Honda's production suspensions due to semiconductor shortages underscore ongoing challenges in the automotive sector.
• Asahi Group's acquisition of Diageo's Kenyan assets signals strategic expansion in the African market.

In recent developments affecting the Asian markets, LG Energy Solution (37322 KS) has cancelled a significant $6.5 billion electric vehicle (EV) battery-supply agreement with Ford. This decision follows Ford's announcement to halt production of certain EV models, reflecting potential volatility in the EV supply chain. The cancellation could impact both companies' future production plans and market positioning, with traders likely to monitor LG Energy Solution's stock for any further developments or strategic shifts.

In the automotive sector, Honda (7267 JT) has announced temporary suspensions at its Yorii and Suzuka plants in Japan, as well as its joint venture factory with Guangzhou Automobile (2238 HK) in China. These suspensions, scheduled for late December and early January, are attributed to a persistent semiconductor shortage. This ongoing issue continues to affect global automotive production, with potential implications for Honda's output and market share. Additionally, American Honda's recall of over 70,000 vehicles in the US due to brake function concerns may further influence investor sentiment.

Meanwhile, Asahi Group Holdings Ltd (2502 JT) is set to acquire full ownership of Diageo Kenya Limited and a majority stake in UDV Kenya Limited from Diageo (DGE LN) for a combined total of approximately $2.95 billion. This acquisition marks a strategic expansion into the African market, potentially enhancing Asahi's global footprint and revenue streams. Market participants may view this move as a positive step towards diversification and growth in emerging markets.

In other corporate news, Sumitomo Electric Industries (5802 JT) plans to invest JPY 100 billion in data centre gear output, reflecting a strategic focus on expanding its presence in the technology infrastructure sector. This investment aligns with broader trends of increasing demand for data centre capabilities, driven by digital transformation across industries.

The Japanese government, under Prime Minister Takaichi, is preparing to approve the next fiscal year's budget, emphasizing proactive spending to boost economic competitiveness. This approach may influence fiscal policy and economic growth projections, with potential implications for the Japanese yen and related financial instruments.

Trader Insight:

• Traders are likely monitoring LG Energy Solution (37322 KS) for any strategic responses following the cancellation of the Ford deal.
• Market participants may assess Honda (7267 JT) for potential impacts from production suspensions and vehicle recalls.
• Asahi Group Holdings Ltd (2502 JT) could attract attention as it expands into the African market, with implications for its growth strategy.
• Investors might consider the broader implications of semiconductor shortages on the automotive sector, potentially affecting ETFs like the Global X Autonomous & Electric Vehicles ETF (DRIV).
• The Japanese yen (USD/JPY) may be watched closely as fiscal policy developments unfold, impacting currency markets.

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