The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0355 GMT - Graphite miner Syrah's Balama plant operations could remain suspended until mid-2025, Macquarie analysts say. They also reckon Syrah's Vidalia active anode material expansion could be delayed to 2H 2026 given the company's balance sheet position and the weak graphite market. Macquarie downgrades its EPS forecasts for Syrah for the next few years and cuts its target on the stock by 19% to A$0.26/share. It retains an outperform rating. Syrah, down 72% year to date, last traded at A$0.18. ([email protected]; @RhiannonHoyle)
0340 GMT - QBE Insurance is increasingly likely to pull the trigger on capital management at its fiscal 2024 result in February, UBS analysts say in a note. Regulatory capital coverage is likely to remain at or above the top end of QBE's target range this month, while continued momentum in its combined operating ratio positions the insurer to achieve a return on equity of more than 17% next year, analysts say. Consequently, "we believe QBE could commence annual buybacks of US$300 million," they say. QBE is UBS's top pick across Australian general insurers. UBS maintains a buy rating with a target price of A$21.50 on the stock, which is up 0.6% at A$19.035. ([email protected]; @RhiannonHoyle)
0318 GMT - USD/JPY rises to a four-week high after the Bank of Japan leaves its policy rate unchanged, dashing market speculation that the central bank could tighten its policy further. USD/JPY is at 155.06 after briefly rising to 155.27, its highest level since Nov. 21. The currency pair was at 154.66 prior to the BOJ outcome. As the yen weakens, Nikkei futures trim earlier losses and are now down 1.0% at 38790, compared with 1.3% lower prior. Investors will be focusing on BOJ Gov. Kazuo Ueda's press conference later in the day for any hints on the pace of policy tightening. ([email protected]; @kosakunarioka)
0305 GMT - Investors are turning less bearish on China over the long run compared with 12 months ago, Daiwa analysts write in a note. Fund flows to China's stock market should be more positive than in the two years prior to the government's pivot to more aggressive policy support in September, Daiwa says. The investment bank notes that most investors it talked to only had a small underweight allocation or neutral position on China equities. Daiwa adds that one investor noted that ongoing A-share market reform to boost shareholder returns has been undervalued by global investors. Compared with U.S investors, Chinese onshore investors are more positive on Beijing's resolve to boost the economy, Daiwa adds. ([email protected]; @ivy_jiahuihuang)
0145 GMT - Chinese shares open lower, tracking losses elsewhere in Asian markets. Investor sentiment is down after the Federal Reserve signaled fewer rate cuts in 2025. Consumer and real-estate stocks lead the losses in China trade. China Tourism Group Duty Free drops 1.2% and Yonghui Superstores is 7.6% lower. Among developers, Poly Developments falls 1.2% and China Vanke is off by 2.7%. Tech hardware stocks are broadly higher, with Foxconn Industrial Internet rising 1.6%. The benchmark Shanghai Composite Index is 0.4% lower at 3367.75, the Shenzhen Composite Index edges down 0.2% and the ChiNext Price Index slips 0.4%.([email protected])
0135 GMT - SD Guthrie's industrial park joint venture with Eco World Development in Malaysia could be a significantly strategic way to diversify revenue streams, MIDF Research says in a note. The project is expected to contribute to the planter's earnings over the medium to long term, the research house says. With a low gearing ratio of 0.25X as of 3Q--below the property sector average of 0.4X--SD Guthrie appears financially well-placed to pursue new income-generating opportunities, it reckons. MIDF maintains a buy rating on SD Guthrie with a MYR5.43 target price. Shares are 0.2% lower at MYR4.91. ([email protected])
0130 GMT - Hong Kong shares open lower, dragged by property and biotech stocks. That follows a negative lead fro U.S. stocks overnight after the Fed signaled a slower pace of interest rate cuts. Link Real Estate Investment and Longfor Group lead losses, down 3.0% and 2.9%, respectively. WuXi AppTec and Wuxi Biologics are 2.8% lower each. Almost all stocks are down on the benchmark Hang Seng Index, with only Hansoh Pharmaceutical rising 2.3%. The Hang Seng Index drops 1.3% to 19610.10 and the Hang Seng Tech Index is 1.7% lower. ([email protected]; @ivy_jiahuihuang)
0106 GMT - Singapore's FTSE Straits Times Index is 0.7% lower at 3751.79 in early trade. The Federal Reserve signaled plans to slow rate cuts next year, which led to a string of market reactions, including a stock selloff in the U.S., says Tai Hui, APAC chief market strategist at J.P. Morgan Asset Management in an email. Asian markets today are expected to take U.S. markets' lead as the year-end approaches, the strategist adds. Among decliners, Thai Beverage falls 1.8% and Singtel sheds 2.2%. Meanwhile, Singapore Exchange rises 0.6% and Yangzijiang Shipbuilding adds 0.7%. ([email protected])
0105 GMT - Malaysia's benchmark Kuala Lumpur Composite Index is 0.3% lower at 1594.52. While Wall Street's negative sentiment overnight will weigh on the local stock market, export-oriented sectors like gloves and technology could gain from dollar strength driven by expectations of a slower Fed rate-cut trajectory, Malacca Securities says in a note. Stocks tied to the data center supply chain, utilities, and building material segments are expected to maintain positive momentum in the near term, the brokerage adds. Among decliners, Nestle (Malaysia) is down 2.0% and Maxis Bhd. is 1.4% lower. Meanwhile, YTL Corp. is 8.9% higher and YTL Power International is up 7.4%. ([email protected])
0010 GMT - Japanese stocks are lower, dragged by falls in electronics stocks, as hopes for the Fed's further rate cuts lessen. TDK is down 5.1% and Lasertec is 4.3% lower. USD/JPY is at 154.60, up from 153.40 as of Wednesday's Tokyo stock market close. Investors are closely watching any developments over U.S.-China trade relations and conflicts in the Middle East. The Nikkei Stock Average is down 1.8% at 38367.48. ([email protected]; @kosakunarioka)
2341 GMT - Japanese stocks may fall after Fed officials projected fewer rate cuts next year, lowering market hopes for further monetary easing. Nikkei futures are down 1.8% at 38495 on the SGX. USD/JPY is at 154.64, up from 153.40 as of Wednesday's Tokyo stock market close. Investors are focusing on any developments over U.S.-China trade relations and conflicts in the Middle East. The Nikkei Stock Average fell 0.7% to 39081.71 on Wednesday.([email protected])
2220 GMT - Australia's S&P/ASX 200 is ready to fall at the open, following U.S. stocks lower after the Fed reeled in expectations for rate cuts next year. ASX futures are down by 1.5%, suggesting the benchmark index will add heartily to Wednesday's 0.1% fall. Before the bell, Paladin Energy said it has got the final regulatory clearance it needs to complete a takeover of TSX-listed Fission Uranium. Another uranium stock, Deep Yellow, said it is deferring the final investment decision on its Tumas project until early March, citing delayed costings and quotes.([email protected]; @RhiannonHoyle)
(END) Dow Jones Newswires