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

0208 GMT - The impact of so-called reciprocal tariffs by the U.S. may not be entirely negative for Malaysia's tech sector as semiconductors are exempt from the 24% tariff, Citi analyst Steven Chan says in a note. He thinks the exemptions should encompass most of Malaysia's tech value chain although risks of future additional tariffs remain. A lower tariff on Malaysia compared with Vietnam, Taiwan and China is likely to strengthen its position as businesses diversify their supply chains, he says. However, companies with exposure to certain end markets, such as autos, may face near-term risks, he adds. Citi maintains a neutral rating on Malaysia's tech sector, naming Frontken as its top pick. Frontken provides surface-treatment and mechanical-engineering services for the chip and other industries. (yingxian.wong@wsj.com)

0149 GMT - China may accelerate consumption stimulus in coming months given the bigger-than-expected potential impact from U.S. tariffs, Citi analysts write in a note. Consumption stimulus would benefit China consumer discretionary players the most, they say. Investors are also increasingly preferring China-focused consumer stocks given geopolitical concerns and external uncertainty, they say. Citi is more positive on companies with low sales exposure to overseas markets, and the bank continues to be constructive on high-quality consumer discretionary companies. Anta, Haidilao, Chow Tai Fook Jewellery Group and Atour Lifestyle are the brokerage's top picks in the China consumer sector. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0119 GMT - Malaysia's benchmark Kuala Lumpur Composite Index is 0.7% lower at 1508.14 after new U.S. tariffs hit stocks on Wall Street overnight. The index may defend the 1500 support level as Malaysia's trade ministry engages with U.S. officials to deal with so-called reciprocal tariffs, Apex Securities says in a note. Investors await U.S. jobs data and Fed Chair Powell's speech due later in the day for further direction, the brokerage says. For now, a defensive stance is favored, with focus on REITs, healthcare, utilities and logistics sectors, it adds. Among decliners, Axiata is 2.2% lower and Maxis Bhd. is down 2.1%. Meanwhile, IHH Healthcare is 0.7% higher and SD Guthrie is up 0.2%.(yingxian.wong@wsj.com)

0119 GMT - Malaysia's equity market may stay range-bound as investors digest the higher-than-expected 24% U.S. tariff, CIMB Securities analysts Ivy Ng Lee Fang and Lim Yue Jia say in a note. Export-driven sectors could come under pressure, though Malaysian glove makers may gain market share from Chinese competitors facing steeper tariffs. The impact on export-driven earnings could become more pronounced in coming months, due to higher tariffs and absence of festive demand, they add. In near term, they expect domestic-oriented companies with stable dividend yields, such as banks, telecom, utilities to provide shelter from tariff-related headwinds. Despite uncertainties, CIMB maintains its end-2025 KLCI target at 1657, with Public Bank, CelcomDigi, Tenaga Nasional, and IHH Healthcare among its top picks. The KLCI at 1511.07. (yingxian.wong@wsj.com)

0119 GMT - Singapore's FTSE Straits Times Index falls 1.1% to 3898.59 amid fears of the impact a global trade war could have on the small, open Asian economy. "This 10% baseline tariff on Singapore will have a significant impact on our economy," Deputy Prime Minister Gan Kim Yong said Thursday. The bigger concern is the broader scope of impact that the tariffs may bring about in time to come as some countries are already unveiling retaliatory measures, he said. Among worst performers on the benchmark index, index heavyweight DBS falls 2.1%, Seatrium drops 2.0% and UOB is down 1.8%. (ronnie.harui@wsj.com)

0034 GMT - The 32% reciprocal tariff imposed by Trump on Indonesia is higher than anticipated, driving further uncertainty for the equities market, Citigroup analyst Ferry Wong says in a note. The investment bank predicts further downward revisions to earnings forecasts, potentially dipping into negative territory, and maintains its cautious outlook for the market. Defensive and consumption-driven stocks are expected to perform well in the near term, while rate-sensitive stocks are likely to benefit from a lower-rate environment. Bank Rakyat Indonesia, GoTo, Astra International and United Tractors are among Citi's key picks. (venkat.pr@wsj.com)

0013 GMT - Japanese stocks are lower as new U.S. tariffs raise concerns about the pace of global growth. Electronics, auto and financial stocks are leading the declines. Kioxia Holdings is down 7.4%, Honda Motor is 4.8% lower and Resona Holdings is down 6.6%. USD/JPY is at 146.34, down from 147.25 as of Thursday's Tokyo stock market close. Investors are closely watching any steps taken by governments around the world in response to the U.S. tariffs. The Nikkei Stock Average is down 1.8% at 34110.96. (kosaku.narioka@wsj.com; @kosakunarioka)

0012 GMT - Amid the chaos of President Trump's tariff blitz, the DBS Chief Investment Office says investors should favor equity markets with room for fiscal stimulus and favor companies with capacity to shift production back to the U.S. For credit, investors should favor high quality credit in the A-/BBB-rated space, maintain "duration barbell" of 2- to 3-year and 7- to 10-year, and favor long-duration Treasury Inflation Protected Securities, DBS CIO says. Also, investors should be overweight safe-haven gold as volatility and uncertainty are tailwinds for bullion owing to its "non-market correlating characteristics," DBS CIO adds. (ronnie.harui@wsj.com)

2354 GMT - Breville's long-term global growth story is unlikely to be derailed by U.S. tariffs but uncertainty remains over near-term impacts, UBS analyst Apoorv Sehgal warns. While he sees several options for the small-appliance maker to mitigate the impact of tariffs on its U.S. business, Sehgal doesn't see compelling value in a stock that is trading at 32x his fiscal 2026 earnings forecast. He tells clients in a note that the Australian company could raise prices, ask manufacturing partners to wear some of the costs, reduce discounting, reallocate sales to higher-margin retailers, or reallocate resources to growing sales in other geographies. UBS cuts its target price 11% to A$33.10 and keeps a neutral rating. Shares are down 10% at A$26.96. (stuart.condie@wsj.com)

2341 GMT - Japanese stocks may fall as new U.S. tariffs raise concerns about the pace of global growth. Nikkei futures are down 2.0% at 34020 on the SGX. USD/JPY is at 146.10, down from 147.25 as of Thursday's Tokyo stock market close. Investors are focusing on any steps governments around the world are taking in response to the U.S. tariffs. The Nikkei Stock Average fell 2.8% to 34735.93 on Thursday. (kosaku.narioka@wsj.com)

2340 GMT - Australia's Ansell could face intensifying competition while it implements changes to its sourcing and pricing agreements, Jefferies analysts say. They tell clients in a note that it will take time for the personal-protective equipment manufacturer to implement its response to U.S. tariffs. Writing prior to Ansell's announcement that it will hike its U.S. prices to offset tariff impacts, the Jefferies analysts observe that the company has greatest pricing power in categories where it has leading market share. They also reckon that Ansell has flexibility with outsourced products to pull supply from lower-tariffed countries. Jefferies has a last-published hold rating and A$42.00 target price on the stock, which is up 3.75% at A$30.44. (stuart.condie@wsj.com)

2325 GMT [Dow Jones]--Guess' fiscal 2026 outlook, which calls for sales to increase up to about 6% from last year, assumes a stable consumer environment with no further material deterioration or significant upturn in demand, CFO Dennis Secor says on a call with analysts. "We are expecting that in general, consumers will remain cautious in their spending, given concerns over returning inflationary pressures and tariff issues," he says. "On top of that, both the war in Ukraine and the Red Sea crisis are not resolved, certainly impacting the European consumer and global supply chain." Despite these headwinds, the company experienced a modest improvement in retail trends during the first few weeks of its current quarter, which it attributed to recent marketing initiatives. (connor.hart@wsj.com)

(END) Dow Jones Newswires

April 03, 2025 22:08 ET (02:08 GMT)

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