The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0847 GMT - The selloff in Chinese online gaming stocks on speculation of higher value-added tax is unwarranted, Citi analysts say. Concerns were triggered after China's three telecom operators announced changes to VAT treatment, with some telecom services reclassified into higher tax bracket, lifting VAT to 9% from 6%. The move raised fears that higher taxes on online gaming virtual item sales could also rise, dragging shares of Tencent down 2.9% and Bilibili 1.4% lower. Citi says those concerns are misplaced, noting that sales of intangible assets, including gaming virtual items, remain subject to a 6% VAT. Citi says the pullback may offer a buying opportunity and reiterates its buy ratings on Tencent, NetEase and Century Huatong. (sherry.qin@wsj.com)

0838 GMT - Wizz Air's traffic looks a little soft as load factor weakened on year despite rising passenger numbers in January, Citi analyst Conor Dwyer says in a note. The budget carrier flew 5.3 million passengers last month as capacity grew 11%, but load factor--a measure of how full planes are--slipped to 84.4% from 86% a year earlier. Shares are largely flat, and are up 11% in the year to date. (anthony.orunagoriainoff@dowjones.com)

0346 GMT - Chinese electric-vehicle makers are likely to see steeper sales declines in February compared with January, says DBS Group Research in a commentary. The sector's January sales were weighed by policy headwinds related to new-energy vehicle purchase tax and scaling back trade-in subsidies, the DBS analysts say. Mass-market manufacturers such as BYD and XPeng--which rely more on trade-in subsidies--posted around 30% on-year falls in January sales. DBS expects February sales to remain soft due to a later Lunar New Year period and policy hurdles. However, softer January and February figures should have limited drag on full-year volumes as 1Q is typically the trough for auto demand, says the bank. (megan.cheah@wsj.com)

0339 GMT - Westports Holdings' outlook is likely to improve on expectations that global trade conditions will stabilize following a potential Xi-Trump meeting in April, TA Securities analyst Tan Kam Meng says in a note. The Malaysian port operator maintained its 2026 throughput growth guidance of up to 5%, with similar growth expected from both transhipment and gateway volumes, he notes. Phase one of Westports' expansion is progressing smoothly, with land reclamation running ahead of schedule and construction set to begin in 2027, he adds. TA Securities upgrades the stock to buy from hold and raises the target price to MYR7.40 from MYR5.57. Shares are 2.5% lower at MYR5.96. (yingxian.wong@wsj.com)

0213 GMT - MISC's entry into carbon capture and storage shipping looks strategically positive, given high entry barriers and long-term structural growth potential, TA securities analyst Luqman Anwar says in a note. Together with Japan's Kawasaki Kisen, MISC has secured a 10-year charter for a newbuild liquefied CO2 carrier, with a second sister vessel expected to be awarded in April, he says. That marks its first commercial entry into the sector, he notes. The deal could open doors to future carbon capture and storage projects. However, earnings impact is expected to be limited in the near term, with vessel deliveries only from 2029, he adds. TA Securities downgrades its rating on MISC to hold from buy due to limited upside potential. It keeps its target price at MYR8.40. Shares are 1.9% higher at MYR8.15. (yingxian.wong@wsj.com)

0035 GMT - The Reserve Bank of Australia looks set to begin raising interest rates and that's going to intensify pressure on infrastructure stocks. Jefferies analyst Anthony Moulder acknowledges the disconnect between cash rates in the markets that most debt is sourced from, and the level of Australian 10 year government bonds. Still, the difference between infrastructure yields and the Australia's 10-year bond has narrowed. Jefferies favors Atlas Arteria and Auckland International Airport over toll road owner Transurban. "Transurban remains well-positioned to continue to deliver solid growth in distributions from its existing portfolio," Jefferies says. "However, at the current yield, it remains at a very low premium to the Australian 10 year." (david.winning@wsj.com; @dwinningWSJ)

0949 GMT - Mercedes-Benz's S-Class vehicles are facing mounting competition from contenders such as Huawei, which highlights a shift from Chinese buyers toward domestic makers of top-end brands, analysts at J.P. Morgan write in a note. "Technology and comfort outweigh brand lineage," the analysts say. The answer from Mercedes is to improve AI integrations for the upgraded S-Class vehicle--from OpenAI, Microsoft and Google. In addition, it has voice control features, and others such as videoconferencing displays and massaging seating. Shares are up 0.4% at 58.01 euros. (aimee.look@wsj.com)

(END) Dow Jones Newswires

February 03, 2026 04:20 ET (09:20 GMT)

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