Honda Motor Co. and Nissan Motor Co. called into question an agreement reached less than two months ago to consider combining, casting doubt on their efforts to form one one of the world’s largest automakers.

Shares in Nissan fell while Honda stock closed higher, reflecting investor views that Nissan was more likely to benefit.

The proposed merger between Nissan and Honda to make it the world's third largest carmaker appears to have stalled with reports claiming Honda proposed