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

2004 ET - The outlook for Malaysia's consumer sector seems bright as government measures and rising disposable incomes boost consumer spending, Maybank IB analyst Jade Tam says in a note. While higher utility and labor costs may pressure margins, companies are expected to focus on sales volume growth to offset these challenges, she reckons. Improved business conditions due to easing raw-material costs and a stronger ringgit against the dollar could further support earnings growth, she adds. Maybank maintains a positive rating on the consumer sector, viewing food-and-beverage staples as best placed to tap the tailwinds in 2025. It names AEON Co. (M), Mr. D.I.Y. Group and Farm Fresh as its top picks.(yingxian.wong@wsj.com)

1957 ET - Posco Holdings could post below-consensus 4Q earnings on narrower profit margins, Daishin Securities analyst Lee Tae-hwan writes in a note. The South Korean steelmaker may have sequentially recovered in sales, which likely topped 8.4 million metric tons of steel in volume for the October-December period. However, its profit margins may have weakened due to lower steel-product prices, Lee says. He estimates Posco's 4Q operating profit at KRW474 billion, well below the market consensus forecast of KRW698 billion. Daishin cuts its target price for the stock by 13% to KRW410,000 and keeps a buy rating. Shares are 1.0% lower at KRW258,500. (kwanwoo.jun@wsj.com)

1920 ET - Japanese stocks are lower, dragged by falls in retail and pharmaceutical stocks, as concerns about higher borrowing costs continue. Fast Retailing is down 6.1% after its first-quarter results. Chugai Pharmaceutical is 4.8% lower. Seven & I Holdings is down 1.2% after third-quarter net profit dropped 89% on year and missed analysts' estimates. USD/JPY is at 158.20, compared with 158.14 as of Thursday's Tokyo stock market close. Investors are closely watching any comments on the yen's recent depreciation from Japanese government officials and any developments in U.S.-China trade relations. The Nikkei Stock Average is down 0.9% at 39245.42. (kosaku.narioka@wsj.com; @kosakunarioka)

1840 ET - Japanese stocks may decline as concerns about higher borrowing costs continue. Nikkei futures are down 0.3% at 39460 on the SGX. USD/JPY is at 158.09, compared with 158.14 as of Thursday's Tokyo stock market close. Investors are focusing on any comments on the yen's recent depreciation from Japanese government officials as well as any developments over U.S.-China trade relations. The Nikkei Stock Average fell 0.9% to 39605.09 on Thursday.(kosaku.narioka@wsj.com)

1733 ET - Collins Foods may want to consider pushing to be awarded the KFC master franchise rights for Germany by Yum! Brands, according to Citi's Sam Teeger. He reckons that's potentially a better way of Collins increasing its scale in Europe, as desired, versus an acquisition in a new market. Teeger's remarks follow a Yum! Brands filing showing that, in December 2024, it re-acquired the KFC rights for Germany from IS Gida. "We recently published our thoughts that if Collins was going to expand in Europe, then the U.K. or Italy would be potential markets," Teeger says. "But we see Germany as relatively lower risk given Collins already has experience in this market and its adjacency to the Netherlands could present cost-sharing and sourcing benefits." Citi has a buy rating and A$9.38 target on Collins, which last traded at A$7.22. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

1654 ET - An artificial intelligence-fueled boom of data-center construction is lifting demand for electricity and creating opportunities for developers of tools that can help make power systems more resilient to weather-related disruptions, says Jay Koh, a managing director at Lightsmith Group in New York. The private-equity firm last year invested in artificial-intelligence startup AiDash, whose software helps utilities keep trees away from power lines to reduce wildfire risks. "As you see increasing volatility due to extreme weather events, whether it's fire risk or storm risk or flood risk or heat waves, we think that there's going to be enormous amounts of demand for resilience of the energy system," Koh says. (luis.garcia@wsj.com; @lhvgarcia)

1648 ET - Australian stocks are expected to open higher, with ASX futures up 0.3% before the bell. Australia's benchmark index lacks typical cues from Wall Street, where U.S. stock markets were closed for the day to mark former President Jimmy Carter's memorial. The S&P/ASX 200 edged 0.2% lower Thursday, snapping the five-day winning streak it recorded to start the new year. Firmer commodity prices may be a tailwind for some mining and energy stocks, with iron ore, gold, copper and crude oil all gaining. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

1433 ET - Gordon Brothers paid over $400 million to acquire discount retail chain Big Lots, the liquidation firm says. Overall, the parties involved were happy with the deal, as they had to move quickly in order to have a going concern sale that avoided layoffs, Gordon Brothers Chief Transaction Officer Kyle Shonak tells WSJ. The deal was a combination of some expenses that Gordon Brothers committed to paying in addition to cash that it paid upfront, Shonak says. Gordon Brothers is now in the process of selling Big Lots' inventory at a discount and closing the stores that Variety Wholesalers won't be acquiring by the end of March. (sabela.ojea@wsj.com; @sabelaojeaguix)

1421 ET - Biotech's year ahead looks uncertain, but it could still be a safer option in a market downturn, Baird analysts say. The unknowns of a Trump administration, including possible tariffs and regulatory changes, make it hard to predict industry growth, though analysts are cautiously optimistic. If inflation and volatility worsen, analysts believe it could revamp investor confidence in large-cap biotech companies as a safe place to keep their money. If tariffs and inflation are better than expected, small and mid-sized companies could benefit from a lower cost of capital. (katherine.hamilton@wsj.com)

1334 ET - Gordon Brothers is being realistic about the prospects of the sale at Big Lots' closing stores after inking a takeover deal with the discount retail chain. "It's the beginning of the sales, but the hope is that the consumer shows up and continues to come to the Variety Wholesalers-owned stores as well," Gordon Brothers' Chief Transaction Officer Kyle Shonak tells WSJ. "There's all kinds of factors that play into it," such as snow storms and consumer sentiment and how they affect foot traffic, Shonak says. Overall, one of the main reasons why the liquidity firm bought Big Lots was to get the asset-based loans repaid, Shonak says. (sabela.ojea@wsj.com; @sabelaojeaguix)

1312 ET - Gordon Brothers is in the midst of assessing how valuable Big Lots' real estate and inventory is after closing a deal to acquire the discount retail chain right after the holidays, the liquidation firm's Chief Transaction Officer Kyle Shonak tells WSJ. The agreement came after Gordon Brothers put together a backup bid in case Big Lots' deal with Nexus Capital Management fell through, Shonak says. The company then brought to the table Variety Wholesalers to maximize the value of the real estate and also gave an opportunity and a pathway for the company to save jobs and for some semblance of big lots to remain intact, Shonak says. Variety is also assessing the number of Big Lots stores it will be buying as part of the deal, and whether there will be any management changes, Shonak says. "It's still pretty early. (sabela.ojea@wsj.com; @sabelaojeaguix)

1304 ET - JCPenney's merger with Sparc Group, the portfolio company for brands like Brooks Brothers and Eddie Bauer, comes amid an upswing for the shopping mall mainstay that emerged from bankruptcy four years ago, according to data from Placer.ai. Store visits were down 3% in 4Q, but that's a big improvement from a 6.9% drop in the prior quarter, 8.6% decline in 2Q and 9.2% in 1Q, the data shows. Placer.ai says JCPenney's recent initiatives likely played a part in the upward trajectory in foot traffic. During 3Q, the brand invested $51 million in store operations and saw positive results from a Thursday Night Football promotion, as well as a revamped loyalty program, the firm says in its report. (dean.seal@wsj.com)

(END) Dow Jones Newswires

January 09, 2025 20:04 ET (01:04 GMT)

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