Nikkei average starts 15 yen higher, Bank of Japan to assess sustainability of prices and wage increases, with Governor Ueda holding a press conference in the afternoon.

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Bank of Japan to assess sustainability of prices and wage increases. Governor Ueda to hold a press conference in the afternoon.
The Bank of Japan will assess the sustainability of wage increases and prices at the monetary policy meeting on the 19th. Amid speculation in the market about an early end to the negative interest rate policy, the Bank of Japan will discuss the need to revise monetary policy based on the analysis of the current and future state of the economy.

Hedging costs for yen volatility reach highest level since July ahead of Bank of Japan decision.
Forex traders are preparing for the possibility that the Bank of Japan will make significant progress toward normalizing its policies at the monetary policy meeting on the 19th. As anticipation of movement in the yen exchange rate after the Bank of Japan meeting spreads, the next-day implied volatility (IV) for the dollar-yen pair has risen to about 33% or 200 pips, the highest level since the July meeting.

Nippon Steel to acquire U.S. steelmaker United States Steel for around 2 trillion yen, targeting the growing EV market.
$Nippon Steel (5401.JP)$Nippon Steel will acquire U.S. steelmaker United States Steel for around 2 trillion yen in 2024. The decision to make this large-scale acquisition is motivated by the intention to strengthen production capacity overseas, capture the growing electric vehicle (EV) market, and secure raw material rights.

Honda to start production of passenger EVs in Thailand, the first among Japanese automakers.
$Honda Motor (7267.JP)$Announced that they have started production of electric vehicles (EVs) in Thailand. They will produce multi-purpose sports vehicles (SUVs) and release them in Thailand from January to March 2024. This is the first time that a Japanese company has produced passenger EVs in Thailand.

Hitachi Ltd sponsored adr - rebounds after 4 days, energy-saving IT systems to support customer's digital transformation = Nikkei
$Hitachi (6501.JP)$Rebounds after 4 days. The morning edition of the Nihon Keizai Shimbun dated the 19th reported that the company's subsidiary Global Logic is pushing for the introduction of energy-saving software for corporate customers.

Kanden shifts to decarbonization, cancels construction of the Hamaoka thermal power plant in Wakayama. They have decided to cancel the construction of the thermal power plant in Wakayama City. With the restart of the nuclear power plant, the electrical utilities can secure the supply capacity, and the need for new CO2-emitting thermal power plants has diminished.
$Kansai Electric Power (9503.JP)$Decided to cancel the construction of the thermal power plant planned in Wakayama City. With the restart of the nuclear power plant, they can secure the supply capacity of electrical utilities, and there was diminishing need for the establishment of new CO2-emitting thermal power plants.

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Source: Nikkei, Bloomberg, Trader's Web