The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0334 GMT - Chinese regulators' latest videogame approval figures signal continued support for the games industry, says Morningstar's Ivan Su in a note. The number of videogame licenses issued in 1Q rose around 22% compared with the same period a year earlier, which sets the stage for another strong year of approvals, the analyst says. The videogame industry seems to no longer be supply-constrained and the raw number of licenses matters less for revenue projections, he adds. He describes Tencent's approval for "Rainbow Six Siege" as a big win and expects strong performance from the title as Tencent is likely to add deep localization and build a vibrant e-sports scene. Morningstar retains a $102.00 fair-value on top sector pick Tencent's ADRs, noting they appear undervalued. The ADRs last closed at $62.18. (megan.cheah@wsj.com)
0256 GMT - Taiwan Semiconductor Manufacturing Co. could see stronger revenue growth over the next two years, Citi analysts say in a note. Chip demand is not only growing for the accelerators of artificial intelligence but also for the broader ecosystem, including CPUs, networking chips and co-packaged optics, they note. A tighter supply environment reinforces TSMC's pricing power and margin resilience, they say. TSMC's AI-related revenue could more than double thanks to demand for bigger, more advanced chips, they note. Citi expects 2-nanometer chips to become the biggest revenue contributor at TSMC, with clear order visibility for at least over the next three years, they add. Citi raises its target price on TSMC to NT$2,800 from NT$2,600. Shares are at NT$1,780.00. (sherry.qin@wsj.com)
0256 GMT - Haier Smart Home's near-term profitability could be pressured by weaker operating leverage and higher fuel costs, says Morningstar's Jeff Zhang in a note. The Chinese home-appliance maker's 2025 results missed the analyst's expectations on lower 2H revenue. He cuts his projected five-year revenue compound annual growth rate to 3.5% from 5.0% to factor in lingering soft demand in China and the U.S. Morningstar reduces its fair-value estimate for Haier's Shanghai-listed shares to 30.50 yuan from 33.50 yuan and on its Hong Kong-listed shares to HK$33.90 from HK$37.20. However, Haier's shares on both exchanges are still attractive to Zhang, who says investors are overlooking the company's potential margin upside. The A-shares fall 3.2% to 21.52 yuan, while the H-shares decline 3.8% to HK$21.04. (megan.cheah@wsj.com)
0234 GMT - Mapletree Industrial Trust Is likely to gain from strong secular growth trends such as cloud computing and artificial intelligence, says Morningstar's Xavier Lee in a report. The industrial-focused real-estate investment trust is poised to benefit from this trend as its data-center portfolio makes up around 58% of its overall portfolio, the analyst says. The REIT's manager also actively engages in capital recycling and asset enhancement to optimize the REIT's aging Singapore industrial portfolio, the analyst notes. While industrial REITs have experienced corrections amid potential supply-chain disruptions from the outbreak of the Middle East conflict, some data-center REITs have demonstrated relative resilience, he adds.Morningstar has a S$2.20 fair-value estimate on Mapletree Industrial, which adds 0.5% to S$1.95. (megan.cheah@wsj.com)
0218 GMT - Prime office demand in Singapore is likely to remain resilient despite geopolitical headwinds this year, says Morningstar's Xavier Lee in a report. Grade A office vacancy in the city-state as of end-2025 fell to its lowest level since 1Q 2024, the analyst says, citing data from real-estate services provider CBRE. He expects vacancy to stabilize as tenants navigate an economic outlook clouded by the Middle East conflict. Vacancy could then tighten in 2027 if business confidence recovers, he adds. Among the office-focused real-estate investment trusts, he prefers Keppel REIT given its high-quality portfolio and potential for good dividends. Morningstar has a S$1.10 fair-value estimate on Keppel REIT, which gains 1.1% to S$0.89. (megan.cheah@wsj.com)
0204 GMT - The Malaysian government's RON95 fuel subsidy cut might not materially disrupt consumption trends, as most users consume less than the revised quota, RHB IB analyst Soong Wei Siang says in a note. Malaysia is cutting the monthly quota for subsidized RON95 fuel to 200 liters from 300 liters per person amid rising oil prices. Policy support and stable domestic demand will likely sustain the consumer sector's earnings, but prolonged Middle East tensions might pose inflation risks, he says. Names with defensive qualities and domestic-centric earnings are still preferred, as they are seen to be insulated amid heightened geopolitical uncertainties, he adds. RHB maintains an overweight rating on Malaysia's consumer sector, pegging Nestle (Malaysia), Mr. D.I.Y. Group (M), Eco-Shop Marketing, Farm Fresh and AEON Co. (M) as its top picks. (yingxian.wong@wsj.com)
0202 GMT - Aluminum Corp. of China's capacity expansion is likely to reinforce its long-term competitiveness, says DBS Group Research's Tina Ting Hu in a note. The Chinese aluminum producer's acquisition of a Brazilian aluminum company with Rio Tinto is likely to enhance the former's resource footprint and expand its upstream aluminum portfolio, she says. Chalco's higher capital expenditure is also likely to increase its long-term product competitiveness, she adds. Elevated aluminum prices should also drive further results improvement, she says. DBS retains its buy rating, as well as target price of 13.80 yuan on its Shanghai-listed shares and HK$15.20 on its Hong Kong-listed shares. The China-listed shares rise 5.2% to 12.04 yuan, while the Hong Kong shares gain 7.0% to HK$11.57. (megan.cheah@wsj.com)
0140 GMT - SD Guthrie's rising diesel and logistics costs could be offset by elevated crude palm oil prices, Public Investment Bank analyst Chong Hoe Leong says in a note. The company is pivoting into industrial land and renewables to diversify its earnings base, he notes. Fertilizer costs, which accounts for 27%-28% of direct costs, are locked in for this year, while diesel risks are higher in Indonesia, he says. Limited direct exposure to the Middle East reduces immediate impact, though prolonged conflict could lift shipping costs, he adds. Chong says about 42% of SD Guthrie's 2026 Malaysian output is locked in at 4,400 ringgit a ton. Public IB maintains an outperform rating on SD Guthrie and keeps the target price at 6.79 ringgit. Shares are unchanged at 5.92 ringgit.(yingxian.wong@wsj.com)
0117 GMT - Most Malaysian banks are likely to deliver dividend yields of at least 4% despite the prolonged Middle East conflict given their stronger fundamentals than in past cycles, Maybank IB analyst Desmond Ch'ng says in a note. During the early 2010s Arab Spring, elevated oil prices didn't derail Malaysia's growth, and banks maintained solid asset quality, he notes. This time, risks stem from potential supply disruptions via the Strait of Hormuz, which could weigh on global growth. Even so, Malaysia's steady GDP, low inflation and improved fiscal position should support resilience, while banks benefit from stronger capital buffers, better asset quality and higher loan loss coverage, he adds. Maybank maintains a positive rating on Malaysian banking sector, and pegs RHB Bank, AMMB Holdings and Public Bank as top buys. (yingxian.wong@wsj.com)
0032 GMT - Japanese stocks are broadly lower as fears about a shortage of energy and petrochemical products persist amid the Middle East conflict. Chip and electronics stocks are leading declines. SoftBank Group is down 8.3%, Renesas Electronics is 6.8% lower and TDK Corp. is down 6.7%. The dollar is at 159.98 yen, compared with Y159.62 as of Friday's Tokyo stock market close. Investors are focusing on developments in Iran and crude oil prices. The Nikkei Stock Average is down 4.5% at 50964.70. (kosaku.narioka@wsj.com; @kosakunarioka)
0023 GMT - Bubs Australia is impressing Shaw & Partners analyst Philip Pepe with its U.S. growth. Pepe tells clients that the infant-formula manufacturer's U.S. distribution reach looks strong given that it only entered the country in 2022. Bubs, which specializes in goat-milk formulas, has been operating on a discretionary basis pending permanent access approval by the U.S. Food and Drug Administration. Pepe reckons this permanent approval should arrive soon. Shaw & Partners keeps a buy rating and A$0.18 target price on the stock, which is flat at A$0.10. (stuart.condie@wsj.com)
0017 GMT - AMP's bull at Citi reckons that the Australian wealth manager's A$150 million share buyback should alleviate some of the concerns that have weighed on its shares since last month's annual result announcement. Analyst Nigel Pittaway thinks that the buyback should provide greater context to AMP's guidance for flat dividends for two years, while reducing the chances of it making a large-scale platform acquisition. Citi keeps a buy rating and A$1.80 target price on the stock despite current global volatility. Shares are up 4.4% at A$1.305. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
March 29, 2026 23:34 ET (03:34 GMT)
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