The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0908 GMT - The Bank of Japan faces a dilemma in managing interest rates, capital flows and exchange rates, says DBS's Ma Tieying. If the central bank keeps short-term rates on hold while stabilizing long-term yields through JGB market interventions, it may need to tolerate renewed JPY depreciation, the senior economist says. Yen stabilization would therefore remain primarily the finance ministry's responsibility. The BOJ seems ready to step in to stabilize JGBs, using policy tools like increased bond purchases. There's an automatic market stabilizer too: If JGB yields top 3%, they become more attractive to Japanese banks and insurers than U.S. Treasuries, prompting a shift back into local bonds that could help support the yen, Ma says. April is the earliest plausible timing for the BOJ to raise rates but it may wait until June or July, she adds. (fabiana.negrinochoa@wsj.com)

0804 GMT - A stronger yen emerge as another reflationary force in 2026, says Gavekal Research's Louis-Vincent Gave. The currency is undervalued and prone to sharp swings, so perhaps one shouldn't get overly excited by its move from Y159 to the dollar on Friday to Y154 on Monday. Gave says the involvement of the New York Fed raises the possibility of joint U.S.-Japan action to strengthen JPY--one of Bessent's demands before he became Treasury Secretary. A stronger yen was supposed to be a pillar of a potential "Mar-a-Lago Accord" under which USD would be devalued in a controlled manner against Asian currencies. For now highly hypothetical, such an accord would be massively reflationary, he says, noting the equities and commodity price surges that accompanied the Louvre and Plaza Accords of the mid-1980s. (fabiana.negrinochoa@wsj.com)

0558 GMT - OCBC analysts raise their forecasts for gold, now expecting the metal to reach $5,600/oz by end-2026. The move follows a sharp rally in the safe-haven metal, prompting an upgrade from OCBC's original forecast of $4,800/oz, say FX strategist Christopher Wong. Gold's gains reflect recent developments and stronger-than-anticipated persistence, rather than a reassessment of the underlying narrative, he says. "What has evolved is the degree of allocation rather than the rationale for holding gold." Rising government debt, geopolitical fears and policy unpredictability have amplified a structural re-rating of gold's role in investors' portfolios, says Wong. Gold is no longer just a crisis or an inflation hedge, but is being increasingly viewed as a neutral, reliable store of value that provides diversification. Spot gold is last at $5,062/oz. (fabiana.negrinochoa@wsj.com)

0429 GMT - Hong Kong's stock market is likely to maintain strong momentum in 2026, according to HSBC analysts in a research note. The market "enjoyed its best rally" since 2017 and this is likely to continue in 2026 as earnings improve, the analysts say. "With strong anchors now firmly in place, we feel more confident," they say. One emerging aspect is the property market that is turning around, with home prices having grown by 5% in 2025, HSBC analysts note, adding that consumer spending has also recovered in the past three months. "A gradually stabilising residential market that restores consumer confidence and drives up consumer spending--and it's a recipe that's supportive for earnings growth," HSBC says. (tracy.qu@wsj.com)

0348 GMT - United Overseas Bank could post sequential and on-year decline for 4Q total income, CGS International analysts write in a note. The bank could report lower quarterly net interest income on year, given declining interest rates, while seasonally weaker fee income may have driven an on-quarter decline. CGS International expects UOB to report 4Q total income of S$3.34 billion, falling 3.5% on year and 1.7% on quarter. The brokerage reiterates its hold rating on UOB, and thinks it will take time for the Singapore bank's profitability to return to its 2024 peak. However, CGS International raises UOB's target price to S$40.90 from S$36.50 on lower cost-of-equity assumptions from a lower risk-free rate. Shares are down 1.8% at S$38.78. (amanda.lee@wsj.com)

0347 GMT - Goldman Sachs raises its 12-month Taiex target to 34,600 from 32,400, citing earnings upgrades driven by AI-related capital spending. TSMC's stronger-than-expected 4Q results and solid 2026 capex plans point to sustained demand for its AI chips, the analysts say. "This intensified AI‑driven capex cycle is supporting earnings across the supply chain," they add. Gains have also spread beyond TSMC to other chipmakers and tech hardware stocks, showing broader participation in AI demand. While foreign investors have trimmed TSMC holdings, they have shifted into other supply-chain names to keep exposure to Taiwan's AI theme, they note. The Taiex index is up 0.5% at 32109.60. (sherry.qin@wsj.com)

0236 GMT - DBS's 4Q net profit was likely flat on year but down sequentially, UOB Kay Hian analyst Jonathan Koh writes in a research note. The Singapore bank is expected to post milder net interest margin compression. Loan growth during the quarter likely rose 2.5% on year and 1% on quarter, due to muted expansion of corporate loans and residential mortgages. "Fees from transaction services and loans-related activities are likely to be seasonally softer, but offset by seasonal strength from cards," Koh says. UOB KH maintains its buy rating on DBS and target price of S$68.95. Shares are last up 0.1% at S$58.73. (amanda.lee@wsj.com)

0233 GMT - A stronger Malaysian ringgit against the dollar could make the country's equity market more attractive, Public Investment Bank analyst Eltricia Foong says in a note. Foong says capital rotation will shift from developed markets to higher-growth and more fiscal disciplined emerging economies. The analyst also notes that companies dependent on imported raw materials through lower production costs and those with significant dollar-denominated borrowings will benefit from a firmer currency. Gains may be partly offset by lower translated overseas revenue, she adds. While the KLCI has historically been negatively correlated with ringgit strength, this has reversed in recent months, reflecting renewed fund inflows, she says. Public IB favors index stocks such as Malayan Banking, CIMB Group, Tenaga Nasional and Telekom Malaysia. The KLCI is 0.7% higher at 1732.00. (yingxian.wong@wsj.com)

0143 GMT - CIMB Group is expected to report "fairly decent" 4Q earnings, supported by sequential improvement in domestic loan growth and lower credit costs, Maybank IB analyst Desmond Ch'ng says in a note. However, net interest margins may soften on quarter due to seasonal deposit competition and non-interest income could ease, amid lower trading and forex income. CIMB's 2025 ROE is expected at 11.2%, within management's 11%-11.5% target, he notes. Looking ahead, net profit may increase 5.3% in 2026, versus the 1.5% forecast for 2025, driven by stronger loan growth, stable margins and lower credit costs. Maybank maintains a buy rating on CIMB and keeps its target price at MYR8.60. Shares are 0.5% higher at MYR8.34. (yingxian.wong@wsj.com)

(END) Dow Jones Newswires

January 26, 2026 04:20 ET (09:20 GMT)

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