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

0746 GMT - Investor concerns over Mitsui Fudosan's business being weighed by rising interest rates appear overstated, says Morningstar's Xavier Lee in a note. The market doesn't seem to appreciate the Japanese real-estate developer's strong balance sheet and ability to unlock value through monetizing its assets via funds and real-estate investment trusts, he says. Mitsui Fudosan's property portfolio, which includes Tokyo office, retail and mixed-use assets, is its greatest strength to Lee, but he flags that its premium assets might not always earn excess returns consistently through economic cycles. Mitsui Fudosan is the analyst's top sector pick. Morningstar initiates its coverage of the company at a fair-value estimate of 1,720 yen. Shares decline 0.3% to Y1,510. (megan.cheah@wsj.com)

0745 GMT - China equities could struggle to find a fresh catalyst in the near term unless policymakers deliver stronger support measures or AI-driven gains translate into broader earnings growth, according to a Morgan Stanley report. The bank cuts its June 2027 targets for major Chinese indexes, citing weakening economic data, tighter liquidity conditions and reduced room for additional investor inflows. It lowers its earnings growth forecasts for MSCI China to 6% in 2026 and 8% in 2027. Morgan Stanley says China's economic recovery has been delayed by soft domestic demand, a prolonged property downturn and limited policy stimulus. It adds that tighter oversight of cross-border capital flows and a more hawkish Federal Reserve outlook could further weigh on market sentiment.(jie.yang@wsj.com)

0730 GMT - European indexes edge higher in early trade after initially falling at market open. AI-related stocks gain as software stocks fall, with the Europe-wide Stoxx 600 rising 0.2%. The DAX gains 0.2%, led by a 5% jump for Volkswagen after the car maker's board agreed to double its job cuts. London's FTSE 100 is up 0.1%, led by a 3.3% gain for Computacenter. Experian falls 3.1%, while miners in the index also slip. In Paris, the CAC 40 edges up 0.1%. Aerospace software company Dassault Systemes is 3.2% lower, though industrials group Legrand adds 3.2%. Italy's FTSE MIB and the Spanish IBEX 35 both decline by around 0.4% as banks in the countries fall back. The Dutch AEX is 0.3% higher as semiconductor stocks gain, with ASML adding 1.1%.(josephmichael.stonor@wsj.com)

0725 GMT - Smartphone prices are likely to remain under pressure as memory costs stay elevated, prompting manufacturers to pass higher component expenses on to consumers, according to Counterpoint Research. More than 40% of smartphone models have seen price increases in 2026, marking the first time such a large share of devices has become more expensive, Counterpoint says. Global smartphone retail prices have risen about 15% on average this year, while new models are priced roughly 25% higher than comparable devices introduced a year earlier. Some handsets have seen prices nearly double as rising memory and other component costs push up production expenses, it says. To manage costs, vendors are adjusting specifications and product mixes, while consumers are increasingly delaying upgrades and turning to refurbished devices, it adds. (jie.yang@wsj.com)

0711 GMT - Sodexo's ability to deliver on its new strategy remains critical after several challenging years, Bernstein's Sabrina Blanc writes in a note. The French food-services company's new turnaround and growth plan marks a genuine reset for the group, she says. While the strategy appears compelling, with a simplified business model and renewed focus on commercial execution, Bernstein keeps a cautious stance at this stage. The French food-services company still needs to show consistent delivery across markets and commercial momentum, among other elements, she says. "Investors will need to see evidence of progress before fully embracing the group's medium-term ambitions," she adds. Shares are up 0.3% at 58.65 euros. (najat.kantouar@wsj.com)

0701 GMT - China Merchants Bank remains poised to capture China's medium-to-long-term wealth opportunities despite near-term challenges, say DBS Group Research analysts in a note. The wealth management segment remains the lender's key fee income contributor and should offer steady growth this year, even as bank card fees are set to decline, they say. Still, the bank faces greater near-term challenges from weaker loan growth as retail loan demand in China remains subdued, as well as larger net-interest margin pressure from relatively low deposit rates. The analysts expect around a 4.5% earnings compound annual growth rate over 2025-2028. DBS raises its Hong Kong share target price to 58.50 Hong Kong dollars from HK$53.50 and maintains a buy rating. Shares rise 2.5% to HK$53.20. (megan.cheah@wsj.com)

0653 GMT - The dollar rises slightly after dropping significantly on Thursday following comments from Federal Reserve Governor Christopher Waller, who said he would support holding interest rates steady if inflation data back this up. Market attention turns to key U.S. nonfarm payrolls data at 1230 GMT. A strong jobs reading could revive expectations for a Fed rate hike, boosting the dollar, while weak data could increase prospects of unchanged rates and send the currency lower. Investors are cautious due to uncertainty around payroll growth, inflation and the next interest-rate decision, says Clarity Global CEO Mariia Menahem in a note. The DXY dollar index rises 0.1% to 98.989, having dropped to a 10-day low of 98.831 on Thursday. (jessica.fleetham@wsj.com)

0647 GMT - Tencent's AI buildout won't be a perpetual cash burn, Morningstar analyst Ivan Su says in a research note. Tencent's Hy large language model should improve rapidly after procuring large amount of computing power to train it, the analyst notes. If Hy disappoints, the hardware could be rented out to third parties to quickly recoup the steep investment, he says. Still, Su thinks the largest long-term AI potential from Tencent's different applications in advertising, games and WeChat AI agent rather than renting out compute. The analyst thinks Tencent's free cash flow should turn positive in 2027, opening room for larger shares buybacks from that point. Shares are last 2.5% higher at HK$443.80. (sherry.qin@wsj.com)

0645 GMT - Crest Nicholson remains under pressure as challenging market dynamics persist, Berenberg analyst Harry Goad says in a note. The home builder reduced sales guidance to a range of 1,350-1,400 units, implying a 17% to 20% decline year on year, and cited continuing build-cost inflation and weak customer demand. Still, it lowered its net-debt guidance by around 30 million pounds to between 70 million and 90 million pounds. This was driven by land sales and a substantial third-party recovery for fire remediation, Goad says. "While the current macro environment is challenging, we are confident that the fundamentals of the U.K. housing market remain robust, with pent-up demand and, in principle, an attractive returns profile for housebuilders when market conditions normalize," Berenberg says. (anthony.orunagoriainoff@dowjones.com)

0635 GMT - AXA's upcoming new strategic plan will modestly upgrade key metrics, RBC Capital Markets analysts say. This will reflect operational progress and reduced balance sheet volatility for the French insurer after the completion of major deals. RBC expects AXA's new earnings per share compound annual growth range for 2026-29 period to be set at between 7% and 9%, compared with between 6% and 8% previously. On returns, RBC forecasts a 10 percentage point increase to a total payout of 85%. "While French fiscal stress and 2027 elections warrant monitoring, with AXA the most exposed composite on French sovereign bonds, we view the risk as manageable given AXA's well-diversified portfolio," RBC adds. RBC maintains an outperform recommendation on the stock and increases its price target to 54.00 euros from 52.00 euros. Shares closed at 44.21 euros on Thursday. (michael.hennessey@wsj.com)

0634 GMT - Bangkok Expressway and Metro likely has positive catalysts over next 2 years, ttb wealth securities' Saksid Phadthananarak says in a report. The transport company is expected to secure bondholder approval this month to raise debt covenant ratio to 3.0x from 2.5x, easing concerns over potential cash calls. Also, the Thailand company is likely to be awarded two projects in 2027 and is expected to deliver a THB10-per-trip toll increase in September 2028 that should drive earnings to a record high in 2029. The brokerage raises the stock's target price to 8.20 baht from THB8.00 to reflect a base-year rollover, with an unchanged buy rating. Shares are 0.8% higher at THB6.65. (ronnie.harui@wsj.com)

0632 GMT - Delivery Hero's robust second-quarter results are unlikely to drive an upgrade to Uber's bid, Stifel's Clement Genelot writes in a note. The German food-delivery company showed its ability to revive growth across all its regions, he says. Additionally, the "reinvestment plan in the Middle East is less painful than feared, with Talabat [DH's Middle East subsidiary] having recently upgraded its own full-year 2026 guidance on growth," he notes. However, no offer upgrade should be expected after the company's strong results, he says.