The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0304 GMT - Indonesia's appointment of new finance minister Suahasil Nazara suggests fiscal prudence, policy continuity and confidence amid macroeconomic uncertainty, CIMB economists say in a note. His appointment is seen as timely, as the country is facing higher oil prices. Brent crude oil prices hovering around $110 per barrel increases Indonesia's fiscal and inflation risks. Recent natural disasters in the country could also weigh on economic growth and add to spending needs, they note. However, as Nazara is a seasoned fiscal technocrat and a familiar policy hand, his experience should support policy coordination and execution. This would help anchor market confidence while balancing growth and stability, they say.(amanda.lee@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 - Taiwan central bank's September rate decision looks to be a close call. Four of seven economists polled by The Wall Street Journal expect the central bank to stand pat. Economists who expect the Central Bank of the Republic of China to stay on hold for a 10th consecutive quarter think a benign August inflation read suggests no urgency for a hike as the island economic growth remains robust. However, Deutsche Bank expects the CBC to raise rates by 12.5 bps at both in September and December, taking the policy rate to 2.25% by end-2026. ING economists, who call the situation "close to a coin flip," reckon that the Federal Reserve decision before the CBC meeting could affect things. (sherry.qin@wsj.com)

0224 GMT - Asian currencies mostly weaken in Asian trade, after the 10-year U.S. Treasury yield surged above 5% on Monday before settling at 4.960%. The rise in Treasury yield was driven by persistent inflation concerns, elevated oil prices, large government borrowing requirements, and heavy corporate issuance associated with artificial intelligence investment, Commerzbank Research analysts say in a note. The 5% level is psychologically and economically significant, they note, as sustained yields above the level would further tighten financial conditions. The U.S. dollar rises 0.3% to 154.82 yen and 0.45% higher at 1353.14 won, while the Australian dollar is 0.15% lower at US$0.7126, LSEG data show.(amanda.lee@wsj.com)

0221 GMT - Australian consumer spending rose 1.1% in August, which at face value looks healthy, but exclude rising fuel costs and the increase falls to a more moderate 0.6% rise, says CBA. Non-discretionary spending rose 2.2% in August driven by a sharp 12% rise in fuel outlays, the bank adds. Total discretionary spending growth slowed to 0.4%, it adds. The small increase follows a 12% in July. The data comes as Canberra is ruling out another short-term cut to fuel taxes to ease the burden of rising oil prices.(james.glynn@wsj.com; X @JamesGlynnWSJ)

0140 GMT - Standard Chartered says that it is finding it hard to go against market expectations for interest rate increases by the Federal Reserve. Steven Engander, co-head of FX Research at SC, says he can only imagine how hard it is for Fed Chairman Kevin Warsh to stare down the market. Yet there seems to have been a market echo chamber pushing up expectations despite a limited amount of incoming data, and little sign that inflation is going up, he adds. Some indicators suggest that underlying inflation is much lower if tariffs are removed, he adds. There is a very low cost to waiting, he says. (james.glynn@wsj.com; X @JamesGlynnWSJ)

0132 GMT - Bitcoin drops in early Asia trade, slipping further below the $80,000 handle as oil prices sharpen rate-hike expectations. The prospect of tighter financial conditions tends to drag on non-yielding assets, while alarm over the continued Middle East conflict and its inflationary impact dulls risk appetite. Traders might be feeling extra cautious ahead of two events that will influence crypto markets: The Federal Reserve's decision and a vote on U.S. crypto legislation. Legislative progress would reduce regulatory uncertainty and brighten Bitcoin's outlook, says Mahmoud Mashal at VT Markets Dubai. A hawkish Fed would create a more challenging backdrop in an environment of already-high yields, he adds, while a more measured tone would have the opposite effect. Bitcoin falls 1.6% to $77,753. (fabiana.negrinochoa@wsj.com)

0109 GMT - The Commonwealth Bank of Australia raises its estimate of Australia's current nominal neutral official cash rate to 3.85%, from around 3.7% projected in July. The range across the bank's models is now 3.2% to 4.3%, says Trent Saunders, an economist at CBA. Over the medium to long term, CBA sees risks tilted towards a higher neutral rate and a higher average level of the cash rate. However, a higher neutral rate does not mean the cash rate will move in one direction, he says. The Reserve Bank of Australia's OCR currently sits at 4.35%. (james.glynn@wsj.com; X @JamesGlynnWSJ)

0054 GMT - Sales of new homes in Australia declined for a fourth consecutive month in August to their lowest level in more than a year, ensuring that a housing market slowdown is now set to occur in 2027, the Housing Industry Association says. The new home market cannot absorb further interest rate increases on top of the tax increases announced in this year, it adds. Sales of new homes fell nationally by 10.0% in August and down 19.3% since May. This is a tangible and significant deterioration, it adds. (james.glynn@wsj.com; X @JamesGlynnWSJ)

0045 GMT - Indonesia's appointment of a new finance minister could lead to improved policy communication and a gradual return to orthodoxy, Citi economists say, reducing the risk of negative ratings action. While the general environment of impromptu political leadership decisions probably continues, Citi's base case is for clearer MOF communication with investors and stakeholders, particularly global bond investors and ratings firms. That said, Finance Minister Suahasil Nazara inherits a budget with limited fiscal space, set against large social programs and swelling energy subsidies. Citi doesn't expect strategic changes to the budget posture or bond supply outlook, but sees scope for a gradual de-emphasizing of base-money growth targeting that could improve the predictability of banking-system liquidity and BI's operational independence. (fabiana.negrinochoa@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. (kosaku.narioka@wsj.com; @kosakunarioka)

0019 GMT - Indonesia's finance minister pick, Suahasil Nazara, looks credible to OCBC economists, who note his technocratic background and extensive policymaking experience. The announcement wasn't entirely unexpected, given speculation regarding a ministerial reshuffle. Moreover, the prior finance minister's policy measures delivered--at best--mixed results, OCBC's Lavanya Venkateswaran and Ahmad A Enver say. Suahasil's main challenge will be to keep the fiscal deficit below the 3% of GDP ceiling. That seems manageable, but complicated by the need to balance President Prabowo's growth ambitions against limited fiscal space and an increasingly tough external environment. As oil prices rise again, Indonesia's fuel subsidy bill could reach as much as 1.1% of GDP, necessitating expenditure cuts, OCBC says.