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

0704 GMT - Hong Kong is expected to continue benefiting from China's likely significant outbound portfolio investments this year, driven by tariff threats, the yuan's carry disadvantage and Beijing's policy support, according to BNP Paribas analysts. China's outbound portfolio investments hit a record high in 2024, helping Hong Kong's financial markets navigate another year of higher-for-longer USD rates, they write in a note. The Hong Kong Monetary Authority and the People's Bank of China announced six measures to expand cross-border flows in January, which included launching a yuan trade financing liquidity facility. Beijing may also accelerate the allocation of official reserves to Hong Kong, they say. These moves indicate that authorities are further opening up China's borders and will benefit Hong Kong, BNP Paribas says. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0702 GMT - DBS Group's total shareholder return for 2025 remains unclear, Morningstar senior equity analyst Michael Makdad says in a note. The capital return dividend DBS announced for the current year means the bank will pay more in dividends than previously forecasted, Makdad notes. However, the timeline for when DBS's planned share buyback will be completed is still uncertain, making it difficult to determine if the total shareholder return will exceed forecasts, he says. Still, 4Q earnings were as strong as expected, and DBS has guided for net interest income to grow in 2025, even after assuming two U.S. Fed rate cuts, Makdad adds. Loan demand and fee income growth were also strong in 4Q, he adds. (kimberley.kao@wsj.com)

0651 GMT - Singapore banks' return on equity outlook appears optimistic in the long term, Jefferies analysts write in a note. Incremental returns are likely tied to longer-term growth, making it more exciting than near-term capital return upside, analysts Sam Wong and Shujin Chen say, noting the capital return dividend DBS Group announced for 2025. However, this reflects DBS's commitment to shareholder return, while also focusing on long-term growth, they add. This is expected to boost its share price. Wong and Chen describe DBS's 2024 earnings as "another rabbit out of the hat," demonstrating "strong underlying business performance... even in areas that were slightly softer." Jefferies retains a buy rating on DBS with a target price of S$49.00. The stock is 2.5% higher at S$45.78. (kimberley.kao@wsj.com)

0650 GMT - Mahindra & Mahindra remains Nomura's top original equipment manufacturer pick in India's auto and auto-parts sector, the brokerage's analysts say in a research report. Consumers' initial response to the automaker's battery EVs is strong, say the analysts. They see upside potential to Nomura's monthly sales estimates of 3,000 units for FY 2026 and 7,000 units for FY 2027. With further traction in demand for Mahindra & Mahindra's tractors and market share, the brokerage lifts its FY 2025 growth estimate for the company to 10% from 7%. It raises the stock's target price to INR3,681.00 from INR3,664.00 with an unchanged buy rating. Shares are 0.3% lower at INR3,189.35. (ronnie.harui@wsj.com)

0648 GMT - Japan's Nikkei Stock Average closed flat at 38801.17, as gains in chemical and select electronics stocks helped offset losses in trading houses. Murata Manufacturing rose 5.0%, while Mitsui & Co. dropped 1.8%. Mitsubishi Chemical Group gained 2.0% after announcing its plan to sell its drug unit for $3.37 billion. The broader market index, Topix, fell 0.2% to 2733.01. Investors were focused on President Trump's tariff plans as well as domestic earnings. The 10-year Japanese government bond yield rose 1.5 basis points to 1.315%. USD/JPY is at 151.81, compared with 151.41 late Friday in New York. (kosaku.narioka@wsj.com; @kosakunarioka)

0618 GMT - BP's underperforming shares should be boosted by the introduction of a serious activist investor, RBC Capital Markets analysts Biraj Borkhataria and Adnan Dhanani write. Over the weekend, there were unconfirmed reports that Elliott Management has built a significant stake in the British energy company. Any activist investor is likely to call for a change in chairperson and might put pressure on BP to spin off some divisions, the analysts write. Its U.S. shale division, which is worth around $20 billion, its $10 billion lubricants division, and its marketing and retail business, valued at up to $40 billion, are potential target areas, the analyst write. BP's shares closed Friday at 433.25 pence and are down 9.45% over the past 12 months. (adam.whittaker@wsj.com)

0614 GMT - CapitaLand Ascendas REIT's sharpened focus on asset redevelopment looks positive, RHB Research analyst Vijay Natarajan says, citing the REIT's comments at analysts' briefing. The redevelopment of its LogisHub@Clementi property in Singapore could transform the asset from a cargo lift warehouse to a modern seven-storey asset having cold storage facility, with an estimated high single digit return on investment, Natarajan says in a research report. Management also highlighted its Telepark property's attractive location next to Tampines MRT station and the underlying commercial land lease offers good redevelopment potential for the asset. RHB maintains the REIT's buy rating and target price of S$3.20. Units are 0.4% lower at S$2.63. (ronnie.harui@wsj.com)

0538 GMT - Advanced Info Service's earnings outlook may be strong, Maybank Securities (Thailand)'s Wasu Mattanapotchanart says in a research report. The Thai mobile phone operator's 2025 revenue should grow 4%, supported by 2%, 8%, and 15% increases in mobile, fixed broadband, and enterprise revenues, respectively, the analyst estimates. Its core profit growth should outperform Ebitda growth this year, thanks to flat depreciation and amortization expenses and a 9% decline in interest expenses, the analyst says. The brokerage raises its 2025 and 2026 core profit forecasts for the company by 2% and 1%, respectively. It upgrades the stock's rating to buy from hold and raises the target price to THB307.00 from THB301.00. Shares are 1.8% higher at THB285.00. (ronnie.harui@wsj.com)

0516 GMT - Safe Fertility Group's earnings will likely disappoint again in 4Q owing to declining revenue, narrower gross margins and a rising SG&A expenses-to-sales ratio, Thanachart Securities' Siriporn Arunothai says. The company's business continued to slow in 2H last year, likely because of Thailand's soft economy and increasing competition, the analyst says. Its strategy to be more aggressive in marketing with new agents and a business development team resulted in high selling, general and administrative expenses. The brokerage cuts its 2024-2027 earnings forecasts for the company by 11%-17%. It lowers the target price to THB11.00 from THB16.50, with an unchanged buy rating. Shares are 0.5% higher at THB9.50. (ronnie.harui@wsj.com)

0509 GMT - Developments related to U.S. tariffs remain a major factor for Asian equities, Nomura analysts led by Chetan Seth say in a commentary. The Trump administration's pause on tariffs levied on small packages last Friday could bring some added relief to Chinese equities, alongside continued optimism from the DeepSeek theme, the analysts say. Risk assets have taken a hit following Trump's announcement that he would impose "reciprocal tariffs on many countries," Nomura adds. The overhang relating to broader tariffs should keep risk appetite toward Asian stocks in check, the investment bank says. (tracy.qu@wsj.com)

0501 GMT - A dividend surprise may be on the cards for Bharti Airtel, given its robust free cash flow, continued deleveraging and early payment to the government to clear 2016 spectrum dues, Citi Research says. A push by the Indian telecom company's controlling shareholder, which recently raised its stake by issuing debt, could also drive a higher dividend payout, analyst Saurabh Handa writes in a note. Meanwhile, Airtel delivered another solid performance in 3Q, with sequential growth of nearly 6% in revenue and 9% in Ebitda for its India mobile-services segment, he says. Citi maintains a buy rating on the stock with a target price of INR1,900. Shares are 0.7% higher at INR1,690. (farah.elias@wsj.com)

(END) Dow Jones Newswires

February 10, 2025 02:04 ET (07:04 GMT)

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