The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

2038 ET - Chinese shares are lower, dragged by semiconductor and hardware stocks. Investors are watching for details of the trade-in program at a press conference by Chinese officials later today. Cambricon Technologies is down 2.4% and SMIC is off 1.9%. Fullink Technology is down 6.9% and Suzhou Recodeal Interconnect System is 4.6% lower. Among the few gainers, Cnooc is up 0.6% and Cosco Shipping Energy Transportation is 4.4% higher. The benchmark Shanghai Composite Index is down 0.3% at 3218.86, the Shenzhen Composite Index is off 0.7% and the ChiNext Price Index is 0.9% lower. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

2037 ET - Malaysia's technology sector is expected to see an average net profit growth of 25% for 2025-2026, compared with the 2% forecasted for 2024, driven by a recovery in the global semiconductor market, CIMB Securities analyst Mohd Shanaz Noor Azam says in a note. The growth in the semiconductor market is likely to be fueled by increased investments in artificial intelligence infrastructure and a rebound in inventory replenishment for non-AI semiconductor applications, he notes. The analyst forecasts a 17% compound annual growth rate for the sector's net profit from 2023 to 2026, with outsourced semiconductor assembly and testing and electronics manufacturing services segments outperforming in 1H 2025. CIMB maintains an overweight rating on the Malaysian tech sector and names Malaysian Pacific Industries, Genetec Technology and VS Industry as its top picks for 2025. (yingxian.wong@wsj.com)

2031 ET - APAC Realty has the potential to double earnings over 2024-2026 as Singapore's property market transaction volumes recover, DBS Group Research analysts say in a research report. DBS expects a strong rebound in the real estate agency's overall volumes this year on the back of new sales reaching roughly 8,000-8,500 units annually. This recovery will likely stem from drivers such as homeowners, upgraders, and permanent residents buying homes for own-stay, the analysts say. Its valuations are attractive at less than 11X price-to-earnings ratio and dividend yields close to around 8%-11%. DBS raises the stock's rating to buy from hold and the target price to S$0.50 from S$0.48. Shares last quoted at S$0.395. (ronnie.harui@wsj.com)

2027 ET - Computershare's more resilient outlook for margin income, a key profit measure, appears priced in following a roughly 30% gain in its share price since the start of November, UBS analysts say in a note. UBS's target on the stock rises to A$36.15 from A$32.00, but its rating is downgraded to neutral from buy. "From here, with a stronger rebound in capital markets activity more likely to coincide with a lower interest rate outlook, net earnings upside appears increasingly reliant on deploying balance sheet capacity," the analysts say. Computershare is down 1.1% at A$34.70. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2018 ET - Singapore's FTSE Straits Times Index edges 0.2% higher to 3834.37 on possible position adjustments by investors. However, gains may be weighed by the strong print of the U.S. ISM services-sector PMI released overnight. The data have renewed worries over inflation, Commerzbank Research analysts say in a research report. Fed funds futures have pared back expectations of rate cuts this year, they add. Among the best performers on the benchmark index, index heavyweight DBS rises 0.8% and OCBC adds 1.0%. Meanwhile, Mapletree Logistics Trust is down 1.55% and CapitaLand Integrated Commercial Trust is 2.0% lower. (ronnie.harui@wsj.com)

2010 ET - South Korea's benchmark Kospi edges 0.1% higher to 2493.89 in early trade, led by biotech and shipbilding stocks. Retail investors are net buyers, with the retreat seen on Wall Street overnight limiting the gains of local stocks. Index heavyweight Samsung Electronics is up 0.9%, despite its below-consensus 4Q preliminary earnings forecast. Ship-engine maker Hanwha Engine climbs 12% after winning a new contract, biosimilar company Samsung Biologics adds 1.8% and vaccine developer SK Bioscience rises 2.2%. USD/KRW is 1.1% higher at 1,454.40, compared with the prior session's Seoul onshore trading close. South Korea's 10-year government bond yield is down 2.3 bps at 2.794%.(kwanwoo.jun@wsj.com)

2008 ET - Malaysia's benchmark Kuala Lumpur Composite Index is 0.1% lower at 1628.26. The local index may remain in a consolidation phase amid cautious sentiment, with foreign funds remaining net sellers in the absence of catalysts, Apex Securities says in a note. However, this could be short-lived, as Malaysian stocks offer reasonable valuations, the brokerage reckons. Construction sector is expected to maintain its rally, supported by positive sentiment from the Johor-Singapore Special Economic Zone agreement, it adds. Among decliners, YTL Corp. is down 1.5% and Inari Amertron is 1.0% lower. Meanwhile, Gamuda Bhd. adds 0.8% and IHH Healthcare is up 0.7%. (yingxian.wong@wsj.com)

1951 ET - Goldman Sachs adds Iluka Resources to its Asia-Pacific conviction list, predicting a doubling in the Australian miner's Ebitda by 2028. Iluka produces nearly a third of the world's zircon, which analyst Paul Young reckons is "one of the best structural supply side stories in commodities." The company is also building a rare earths refinery, "a strategic asset considering it will only be the Western world's fifth refinery outside of China," GS says. The bank has a A$7.70 target on Iluka, which is up 0.6% at A$5.22. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

1933 ET - Equities trading volumes are showing positive signs for ASX, Australia's dominant securities exchange, Macquarie analysts say in a note. They raise FY25 earnings forecast for ASX by 3.2%, citing better futures volumes, and lift Macquarie's target on the stock to A$66.00 from A$64.00. Still, they highlight medium-term concerns about operating and capital costs. "With ongoing challenges around expenses, we are not at the point to become more constructive on the stock," the analysts say. They reiterate a neutral call. ASX is down 1.4% at A$64.77/share.(rhiannon.hoyle@wsj.com; @RhiannonHoyle)

1926 ET - Macquarie reckons the market may be a little too bullish on Jumbo Interactive's first-half profit. The bank's analysts expect the lotteries company will next month report a 1H profit of around A$18 million, 11% below Visible Alpha consensus and also 11% lower on year. Macquarie's analysts predict lotteries volumes will fall by 7% in FY25, which "has become a more challenging year than expected." The company's strategy to diversify into managed services via M&A also comes with a risk, with recent acquisitions underperforming, they say. Macquarie's target on the stock is trimmed to A$14.40 from A$14.75. A neutral recommendation is retained. Jumbo Interactive is down 1.4% at A$13.93. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

1918 ET - Japanese stocks are lower as U.S. services-sector data overnight renewed concerns about high inflation and borrowing costs. Electronics stocks are leading declines. Omron is down 4.6% and Renesas Electronics is 2.6% lower. The 10-year Japanese government bond yield is up 3 basis points at 1.170%, its highest level since July 2011. USD/JPY is at 158.14, compared with 157.78 as of Tuesday's Tokyo stock market close. Investors are focusing on any developments over U.S.-China trade relations and conflicts in the Middle East. The Nikkei Stock Average is down 0.6% at 39855.06. (kosaku.narioka@wsj.com; @kosakunarioka)

1839 ET - Japanese stocks may fall as U.S. services-sector data overnight renewed concerns about high inflation. Nikkei futures are down 0.5% at 39805 on the SGX. USD/JPY is at 158.15, compared with 157.78 as of Tuesday's Tokyo stock market close. Investors are focusing on any developments over U.S.-China trade relations and conflicts in the Middle East. The Nikkei Stock Average rose 2.0% to 40083.30 on Tuesday. (kosaku.narioka@wsj.com)

(END) Dow Jones Newswires

January 07, 2025 20:38 ET (01:38 GMT)

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