The Land of the Rising Sun, Japan, is also the land of many marquee players in the automobile industry. Apart from being home to many major names, it is also home to the biggest carmaker in the world, Toyota.

The Merger Of Mergers

Two other major companies made it to the headlines recently when reports emerged that Nissan and Honda are in talks to merge their companies, making one large company.

If this said merger goes through, according to some reports, the end result would make it the fourth largest auto company in the world.

It would also take on the largest automaker in the world and their Japanese counterpart, Toyota. The other major forces in the automobile market are Germany's Volkswagen Group, the multinational Stellantis, and Korea's Hyundai.

Nissan Motor Co Ltd

This development has led to major movements at the equity markets in Japan. Both Honda and Nissan are listed on the Japanese stock markets in Tokyo.

Thsi appears to have gotten some good news for Nissan. The carmaker's shares jumped a mammoth 23.70 per cent or JPY 80, hitting the upper-circuit in the bargain.

This took the overall value of the company shares to JPY 418. The company shares had previously closed at JPY 338 per share.

Honda Motor Co Ltd

Meanwhile, Honda, the other party in the merger, had a different story to tell. The shares of the makers of the popular Honda City and Accord saw their shares declining in value.

The shares of the company opened at JPY 1,280, lowering the previous day's JPY 1,284. This only got worse for one of the biggest names in the auto business.

The company shares declined a massive 3.04 per cent or JPY 39 in the intraday trade. The company shares reached JPY 1,244 per piece. The shares only continued to decline even post-lunch.