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

0750 GMT - China's underlying demand conditions remain subdued despite the rebound in the inflation measures, says Barclays analysts in a note. Inflation data showed a modest re-acceleration in August, driven primarily by higher energy and commodity prices, they add. The PPI inflation picked up to 3.8% on year, reversing July's moderation, as higher crude oil and non-ferrous metal prices lifted upstream sectors, while AI-related manufacturing industries continued to benefit from the global AI investment cycle and recorded further price rises, they say. Within PPI, the divergence between producer and consumer goods prices persisted, suggesting that upstream price increases have yet to fully transmit downstream, they add. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0501 GMT - Bank of Japan's hasty rate increases could delay a recovery in consumption and other domestic demand, Crédit Agricole says in a note. Inadequate monetary and fiscal support could disrupt momentum in capital expenditures amid heightened geopolitical risks, the French bank says. Weak capex would leave Japan behind in the global competition for strategic investments and impair future supply capacity, the bank says. It is crucial for Japan to continue supporting the capex cycle while alleviating the negative impact of a cheap yen through foreign-exchange intervention and other economic measures, Crédit Agricole says. (kosaku.narioka@wsj.com; @kosakunarioka)

0357 GMT - China's latest inflation data doesn't mark a turn in anything: Demand hasn't picked up, and energy's masking that, says eToro's Zavier Wong. Energy was the driver behind August's CPI print, with not much movement elsewhere. A flareup in Middle East tensions pushed energy prices up to 4.1% on-year from 0.6% in a single month, he says. Strip that out and core CPI moved by a meager amount. The PPI print shows that too, with upstream categories like oil extraction and metals all up sharply as gasoline prices rise, hitting cost lines for miners. Given where Brent crude prices are sitting--just below $100/barrel--Wong says its likely that September's prints will run hot too as the latest Middle East hostilities keep feeding through. (fabiana.negrinochoa@wsj.com)

0318 GMT - The near-term outlook for Malaysian banks appears more cautious amid elevated funding costs and emerging asset-quality risks, Affin Hwang IB analyst Chin Jin Han says in a note. Banks are expected to tighten asset-quality management to contain risks in retail and selected business loans, he says. However, stronger wealth-management and fee income, alongside net interest income-driven focus, should help offset weaker net interest margin and trading conditions, he reckons. Capital management and attractive dividend yields are also expected to provide support, he adds. Affin Hwang maintains an overweight rating on Malaysian banking sector, pegging AMMB and Public Bank as top picks. (yingxian.wong@wsj.com)

0303 GMT - Public Bank's plans to take unit Public Financial private could give the Malaysian lender greater flexibility over business planning, resource allocation and capital optimization, even if the earnings impact is immaterial, CIMB Securities analyst Ei Leen Tan says in a note. Full ownership should also simplify Public Financial's ownership structure, reduce listing and compliance costs, and allow resources to be redeployed to core banking operations, she says. Tan is largely neutral on the proposed take-private exercise, given limited impact on earnings, capital and valuation. CIMB maintains a buy rating on Public Bank and keeps its target price at 5.50 ringgit. Shares are 0.2% lower at 4.99 ringgit. (yingxian.wong@wsj.com)

0237 GMT - The Singapore dollar consolidates against its U.S. counterpart in the Asian session ahead of U.S. PPI data and CPI data due out Thursday and Friday, respectively. FX markets are reluctant to put on fresh directional positions ahead of the data, OCBC Group Research's Christopher Wong says. The latest escalation in the Middle East conflict "keeps the inflation and Fed policy implications of higher energy prices in focus," the FX strategist adds. The U.S. dollar is little changed at 1.2645 Singapore dollars, LSEG data show. (ronnie.harui@wsj.com)

0235 GMT - Public Bank's proposal to acquire the remaining 26.77% stake in Public Financial should have negligible impact on the Malaysia-listed lender, Maybank IB analyst Desmond Ch'ng says in a note. The 735 million Hong Kong dollar take-private could reduce Public Bank's capital buffer, but shouldn't hinder its dividend payout or plan to return 3.5 billion ringgit in excess capital over three years, he says. The deal is expected to be easily absorbed given Public Financial's less than 1% contribution to Public Bank's earnings. Over the longer term, Public Bank might dispose its Public Financial stake to unlock value and free up capital, given Hong Kong's competitive market, he adds. Maybank maintains its buy rating on Public Bank and keeps target price at 5.50 ringgit. Shares are 0.4% lower at 4.98 ringgit. (yingxian.wong@wsj.com)

0207 GMT - Malaysia's technology sector's bullish momentum could sustain into 2H, supported by improving earnings, positive management guidance and robust order books amid the semiconductor upcycle, RHB IB analyst Lee Meng Horng says in a note. AI-led demand remains a key growth catalyst, with strong wafer fabrication equipment and automated test equipment demand benefiting equipment and engineering services players, he says. Lee expects to see greater upside among laggards and second-tier names where earnings recovery and operational improvements are not fully reflected in valuations. RHB maintains an overweight rating on Malaysian tech sector, pegging Malaysian Pacific Industries, Pentamaster, CTOS Digital, Coraza Integrated Technology and JHM Consolidation as top picks. (yingxian.wong@wsj.com)

2330 GMT - Macquarie now expects Australian house prices to fall 10% from their peak, and that's bad news for investors in retail banks betting on their share-price performance improving. Macquarie thinks the RBA will raise interest rates again this month. Other macro headwinds for banks include unemployment edging up and weak confidence. "Importantly, with low cost deposits now largely hedged, we think the direct impact of further hikes on banks has become negative, with further hikes weighing on credit growth and credit quality," says Macquarie. It stays "underweight" the sector, with ANZ and NAB its preferred exposures. (david.winning@wsj.com; @dwinningWSJ)

1647 GMT - Heading into the holiday-shortened week, bitcoin ETFs saw net inflows of $1.01B posted in the prior three trading days, according to data from CoinGlass. That includes a net inflow of $730.8M posted on Sept. 3. The influx comes as analysts speculate that investors may be changing they way they think about rates. "If investors continue buying while short-term yields remain elevated, [we say] it would indicate the policy rate is no longer the binding constraint on bitcoin," say analysts with Bitfinex in a note. Bitcoin is down 0.9% to $78,523, while ethereum falls 0.4% to $2,485 and XRP rises 1.1% to $1.41. (kirk.maltais@wsj.com)

1511 GMT - Home sales slipped 0.6% year-over-year in August and fell sharply from July, Zillow says. Mortgage rates holding above 6.5% kept many buyers on the sidelines. Newly pending listings, a forward-looking measure of demand, fell 2.6% from a year ago, a sign that the slowdown could continue through the remainder of the year. The typical U.S. home value rose 1.3% from a year ago to $369,678, and the monthly mortgage payment on the typical home was 2% higher than last year, Zillow says. Inventory continues to offer a modest bright spot, with 1.41 million homes for sale nationwide, up 3% from a year ago. Homes took a median of 27 days to go pending in August. That's the same as last year and two days longer than July, according to Zillow.(chris.wack@wsj.com)

1344 GMT - Prediction market and exchange Kalshi says the volume of commodities-related contracts traded over the past seven months hit $400 million. That's more than four times the volume that the exchange's crypto offerings had at the same point in their lifecycle, the company says. Kalshi's commodities prediction markets include gold, silver, copper, WTI crude oil, Brent crude, gasoline, and natural gas. The exponential growth means a few things, a spokeswoman for the company says. "This trend highlights not only the huge demand for commodities prediction markets, but also the compounding power of Kalshi's platform," the spokeswoman says.