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

0353 GMT - BlackRock Investment Institute stays pro-risk even as global rates raise the hurdle for returns. Higher rates and strong equities can co-exist, strategists say. When higher yields reflect robust investment and growth, resulting earnings strength can help offset higher capital costs. Exceptional earnings growth, attractive valuations and a cleaner tactical backdrop support its U.S. and AI overweight positions, and a return to overweight in EM equities. However, BlackRock sees little room for complacency amid risks like renewed energy prices keeping inflation elevated just as the Fed faces a tough choice. A hold could test its credibility, with term premium acting as a release valve as investors demand more compensation to hold long-term bonds. That could push yields higher and raise the bar for equity returns. (fabiana.negrinochoa@wsj.com)

0332 GMT - China's new-home market is showing tentative signs of stabilization, but not a broad recovery, says Yuhan Zhang, principal economist at The Conference Board's China Center. The latest data show divergence even among major markets, with the secondhand housing sector considerably weaker than the new-home segment. The gap is economically important, says Zhang. New-home prices are stabilizing selectively, aided by policy measures, developer pricing strategies and stronger projects in core cities. Resale prices--which respond more directly to demand and sellers' willingness to cut prices--show underlying market confidence remains subdued. "We see some signs of stabilization in a few high-demand markets like Shanghai, but the nationwide picture is still not buyers bidding prices higher." (fabiana.negrinochoa@wsj.com)

0320 GMT - SK Innovation is expected to improve its financial health in 2026 on sharply higher earnings, Yuanta Securities Korea's Hwang Kyu-won and Seo Seok-jun say. The analysts expect the South Korean energy company's operating profit to surge to 10 trillion won this year from 448.7 billion won a year earlier. Its oil-refining and lubricant businesses are driving the expected surge in earnings, with profit margins widening amid global oil supply disruptions caused by the prolonged wars in Iran and Ukraine, they note. Yuanta expects SK's operating cash flow to reach 4.5 trillion won in 2026, with free cash flow turning positive after years in negative territory. Yuanta expects SK's consolidated net debt to fall to 20 trillion won in 2026 from 24 trillion won in 2025. (kwanwoo.jun@wsj.com)

0310 GMT - China's economy continues to show diverging signals, as consumption and investment remain weak, while industrial production powers on, says Zhiwei Zhang at Pinpoint Asset Management. Data earlier showed expected weakness in retail sales--a gauge of consumption--alongside continued contraction in investing activity and solid growth in factory output. Unemployment edged higher, while the property sector's struggles persist. After the economy slowed in 2Q, Zhang says the market is waiting for fiscal policy to become more supportive in 3Q. But there is so far no clear sign of stronger fiscal spending yet, he adds. That leaves China's economy open to downside risks as it will take time for fiscal support to be implemented and transmitted. (fabiana.negrinochoa@wsj.com)

0306 GMT - China's auto sales this year are likely to fall 21%, the largest on-year decline in the sector over the past two decades, say Daiwa analysts in a note. Market concerns over the government's replacement subsidy, an increase in China's NEV purchase tax, and slower product launches for 2026 are among the main drivers weighing on sales, they say. The replacement subsidy will likely be phased out and could put downward pressure on overall auto sales in China this year and the next two years, they say. China's auto sales will likely record an annual decline of 2% in 2027 and 2028, they add.(jiahui.huang@wsj.com; @ivy_jiahuihuang)

0302 GMT - Australian banks' recent underperformance relative to global peers shouldn't be seen as a buying opportunity, Macquarie analysts warn. They tell clients in a note that, since late 2024, global bank stocks have been catching up on ASX counterparts following a period of depressed valuations. However, Australia's premium has narrowed rather than disappeared, with its banks still trading at a 50% premium to global peers on a price-to-earnings basis. The MS analysts see limited scope for Australian banks to meaningfully improve revenues, leaving cost reduction as the most credible route through which they can lift returns. Without a sustained improvement in profitability, they anticipate further compression in Australian bank valuation multiples. (stuart.condie@wsj.com)

0253 GMT - Global auto sales will likely decline by 4% this year due to weakness in China, Daiwa analyst Kelvin Lau writes in a note. Global auto sales will likely remain sluggish next year, with weakness persisting through 2029, he adds. An increasing number of automakers are using their current technology and capital to develop new segments such as humanoid robots to maintain long-term profitability, he adds. Among the automakers, Daiwa's top picks are BYD, Hyundai Motor and XPeng under the transformation theme. XPeng plans to ultimately sell part of its humanoid robot business in the coming 18 months, but remain a controlling shareholder. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0247 GMT - Palm oil rises in early Asian trading, supported by expectations of tighter global vegetable-oil supplies. El Nino risks and tightening supply are likely to further support crude palm oil prices, CIMB Securities analyst Ivy Ng Lee Fang says in a report. However, weaker export demand could limit gains. Cargo surveyor AmSpec Agri Malaysia estimates that Malaysian palm oil exports fell 17% on month during Sept. 1-10. The Bursa Malaysia Derivatives contract for November delivery is up 23 ringgit at 4,873 ringgit a ton.(amanda.lee@wsj.com)

0228 GMT - Tuas's bulls at Morgan Stanley see upside to the stock even if the Singapore-focused telco loses its mobile license. Having checked with industry players, MS analysts see only a low probability of regulators severely punishing Australia-listed Tuas over its breaches of license conditions. However, they think any clarity on the ultimate outcome would likely be seen positively by the market. They tell clients in a note that a benign regulatory outcome could help the stock rerate toward its historical average, while a draconian penalty could unlock the strategic value of the Australia-listed company's large subscriber base. MS has a last-published overweight recommendation on the stock and a target price of 5.00 Australian dollars. Shares are up 1.9% at A$2.14. (stuart.condie@wsj.com)

0208 GMT - UltraGreen.ai could face pricing pressure after a competitor, Zydus Lifesciences, launches its product in the U.S., say DBS Group Research analysts in a note. Zydus has begun marketing its diagnostic imaging dye in the U.S., according to the Food and Drug Administration, the analysts say. This increases competition for UltraGreen, as the Americas accounts for 70% of its revenue, they say. Zydus likely can afford to compete aggressively on price to establish market share in this business, while UltraGreen remains disproportionately exposed to any erosion in average selling prices and volumes, they add. DBS cuts its 2027 revenue and earnings estimates for UltraGreen by 31% and 45%, respectively. The bank trims its target price to 65 U.S. cents from US$0.80 and maintains a hold rating. Shares decline 5.1% to US$0.555. (megan.cheah@wsj.com)

0109 GMT - Immutep gets a new bull at Jefferies, where analyst David Stanton sees a clearer potential development path for the biotechnology company's lead product candidate. Raising his recommendation to buy from hold, Stanton is encouraged by the Australian company's update that the early discontinuation of a lung cancer study doesn't appear to be linked to clinical factors or trial execution. Emerging evidence supports a cautiously constructive view that the outcome stemmed from an isolated manufacturing or product-characterisation issue, Stanton explains in a note to clients. Risk/reward looks more constructive to Stanton, who now includes Immutep's phase IIhead and neck squamous cell carcinoma opportunity in his valuation. Jefferies doubles its target price to 8 Australian cents. Shares are flat at 4.7 Australian cents. (stuart.condie@wsj.com)

0020 GMT - Japanese stocks are lower in early trade, weighed by concerns about the Iran conflict and higher energy costs. Chip-related stocks and trading houses are leading declines. Tokyo Electron Ltd. is down 2.7% and Marubeni is 1.7% lower. The dollar is at 154.48 yen, compared with Y154.22 as of Monday's Tokyo stock market close. Investors are closely watching developments in the Middle East and crude oil prices. The Nikkei Stock Average is down 0.2% at 63338.88.