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

0823 GMT - China's stock market is expected to further diverge from the country's economic performance, HSBC's Herald van der Linde says. The equities market has been performing well, and Van der Linde notes that high-saving Chinese households are increasingly channeling cash into stocks, reflecting growing investment confidence. However, domestic consumption is likely to stay weak this year, dragging on the economy. Elsewhere in Asia, the head of APAC equity strategy expects to see stock market recoveries in Indonesia and India, driven by fiscal and monetary stimulus that should lift corporate earnings. HSBC remains bullish on Chinese, Indonesian and Indian equities, favoring Chinese hardware technology, power equipment, gaming and luxury goods sectors in particular. (jason.chau@wsj.com)

0822 GMT - Asia's AI stock rally, centered on South Korean and Taiwanese chipmakers, is set to continue in 2026, underpinned by the U.S. data-center boom, HSBC's Herald van der Linde says. He has a positive view on the earnings growth outlook for hardware tech companies like Taiwan's TSMC. However, the analyst warns that heavy investor positioning in high-valuation AI stocks poses substantial risk, even if those risks may take time to surface. "If the roll out of data center changes, everybody may run for the exit," adds van der Linde, head of APAC equity strategy at HSBC. (jason.chau@wsj.com)

0821 GMT - Palm oil producer Bumitama Agri is likely to serve as a proxy for rebounding crude palm oil prices, Macquarie analysts Amanda Foo and Hanel Tan say in a note. The Singapore-listed company's 100% upstream exposure provides high earnings leverage to palm oil prices, they say. Given current weakness in palm oil prices is likely temporary, the analysts see potential for Bumitama's stock to re-rate over several months. They expect Bumitama to post 2025-2026 adjusted profit of S$224 million-S$236 million. "We estimate a MYR100/ton change in crude palm oil price could lift earnings by 7%, all else equal," they add. Macquarie initiates coverage of Bumitama with an outperform rating and S$1.70 target price. Shares fall 0.8% to S$1.27. (megan.cheah@wsj.com)

0807 GMT - Nissin and Yakult would benefit the most from a potential suspension of consumption tax on food-and-beverage products in Japan, as they have notable earnings exposure to products that would be likely to qualify, Bernstein analysts say in a note. The Japanese government is considering a plan to offer a two-year consumption tax holiday on F&B products to help ease cost-of-living pressures, according to local media reports citing unnamed sources. Toyo Suisan, Ajinomoto and Kikkoman would benefit on a smaller scale, while Asahi and Kirin could benefit through their domestic nonalcohol divisions. Bernstein expects brand owners to hold off on price increases in the first year of a tax holiday, though the second year may offer greater scope for price hikes. (jason.chau@wsj.com)

0754 GMT - Polycab India is expected to benefit from likely robust demand for cables and wires in India, Elara Securities (India)'s analysts say in a research report. Likely drivers include capital expenditure and surging copper prices, resulting in higher average selling prices for the electrical equipment company, the analysts say, adding that its fast-moving electrical goods segment continues its profitable run thanks to increased contribution from its solar category. The brokerage revises up its FY 2027 EPS estimate for Polycab India by 2% and raises the stock's target price to INR8,180.00 from INR7,970.00 to reflect a valuation roll-forward. Shares are 3.9% higher at INR7,408.85. (ronnie.harui@wsj.com)

0749 GMT - Nordic markets are seen opening lower, with IG calling the OMXS30 down 1% at around 3,009. The EU risks receiving punitive tariffs of 10% from Feb. 1 and 25% from June 1, with President Trump saying the tariffs will apply until a complete and total purchase of Greenland is completed. "This gives us a completely new and escalated trade war situation, with geopolitical undertones," SEB senior economist Robert Bergqvist writes. Trump's territorial claim to Greenland cannot possibly be accepted by the EU, Europe or NATO, and U.S. support for Ukraine is also at stake, Bergqvist adds. U.S. stock markets are closed today due to a public holiday. OMXS30 closed at 3039.09, OMXN40 at 2709.64 and OBX at 1662.37. (dominic.chopping@wsj.com)

0743 GMT - Germany's engineering and machinery industry would suffer significantly from new U.S. tariffs, industry group VDMA says, while calling on the EU to stand up to the U.S. on Greenland. "The European mechanical and plant engineering industry is already disproportionately affected by U.S. punitive tariffs because a large number of products are subject to special tariffs of 50% on steel and aluminum," VDMA President Bertram Kawlath says. VDMA, which represents more than 3,000 mostly medium-sized companies in Germany, urges the EU to examine countermeasures and calls for deeper economic and security integration. "If the EU gives in here, it will only encourage the U.S. president to make the next ludicrous demand and threaten further tariffs," Kawlath says. (sarah.sloat@wsj.com)

0703 GMT - Tech Mahindra's progress on its three-year turnaround plan appears good so far, Nomura analysts say in a research report. The plan, known as 'Project Fortius,' include a higher-than-peers revenue growth rate by FY 2027, for which management recently reaffirmed its ambition to deliver, the analysts note. Project Fortius continues to yield good results for the Indian IT services and consulting company, with increased scope for margin improvement from delivery excellence, portfolio consolidation and further increase in offshore mix in the medium term. Nomura raises the stock's target price to INR1,810.00 from INR1,750.00 with an unchanged buy rating. Shares are 3.7% higher at INR1,732.00. (ronnie.harui@wsj.com)

0657 GMT - It will be another transition year for automakers, but earnings should grow for the first time in three years, Berenberg analysts write. More cost-efficient platforms and a prolonged hybrid and internal-combustion-engine cycle should provide relief to cash flow and margins. In addition, regulatory relaxation and cost restructuring will support earnings as Chinese automakers continue to pose a threat. BMW remains fundamentally strong, but valuation seems full and China earnings risk is increasingly palpable, the bank says. Renault faces strategic challenges in electrification, price pressures and internationalization, which may dilute near-term margins, it adds. It downgrades its rating onBMW stock to hold from buy and reiterates its 92 euro price target. It downgrades Renault's stock rating to hold from buy and lowers the price target to 38 euros from 45 euros. (dominic.chopping@wsj.com)

0649 GMT - Trump's new tariff threats on several European countries mark a dramatic escalation in his attempts to obtain Greenland, says Pepperstone's Michael Brown. Markets have reacted relatively predictably, with equity futures lower across the board, the dollar softer amid a modest "sell America" trade and precious metals surging. While there are a lot of moving parts--and a need to mind Europe's reaction--Brown reckons this is another Trump gambit: make an outlandish threat, escalate significantly, extract concessions, reach some form of agreement. For markets, that likely means some near-term choppiness as headline noise becomes deafening, followed by a relief rally when another "TACO" moment arrives. For Brown, this bolsters an already strong bull case for precious metals. The fundamental bull case for equities remains solid too, giving opportunity to buy on dips. (fabiana.negrinochoa@wsj.com)

0634 GMT - Singapore's benchmark FTSE Straits Times Index is likely to be range-bound, weighed by the banks, say Macquarie analysts in a note. The city-state's equities market is generally top-heavy, dominated by the financial sector and Singapore-listed real-estate investment trusts, they note. They expect less fundamental upside in the banks--generally index heavyweights--following three years of re-rating. Meanwhile, mid- to small-cap companies in Singapore could benefit from a combination of low interest rates, Singapore dollar strength and a trading liquidity boost stemming from a central-bank-led review of the equities market, according to the analysts. Macquarie's top small-mid-cap picks include iFast Corp., Frencken Group and UOB Kay Hian.(megan.cheah@wsj.com)

0623 GMT - Bayer is expected to open higher after the U.S. Supreme Court agreed to hear its challenge to litigation which claims its flagship weedkiller Roundup causes cancer. The court on Friday said it would take up an appeal from the German company. "We expect a positive share price response," Jefferies analysts write. The decision by the court is incrementally positive and could affect the tens of thousands of remaining claims, they said. The company booked litigation provisions alongside third-quarter results. The decision by the court also improves Bayer's negotiating position should it wish to pursue a settlement, the analysts add. Shares closed Friday at 41.515 euros.(adam.whittaker@wsj.com)

(END) Dow Jones Newswires

January 19, 2026 03:23 ET (08:23 GMT)

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