The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0331 GMT - TSMC's capital spending is likely to reach US$83 billion in 2027 and US$92 billion in 2028, Morgan Stanley estimates, factoring in the chip maker's 2-nanometer and 1.4-nanometer chip capacity expansion. TSMC has a capex target of US$60 billion to US$64 billion this year. TSMC management said in the 3Q post-earnings call that it plans to more than double its 2-nanometer capacity build by 2027. TSMC's 3Q gross margin at 66.4% missed MS's expectation of 67.5%. The company's 4Q margin guidance midpoint of 66% shows continued pressure due to the 2-nanometer ramp-up and expanding overseas operation, MS says. MS maintains its target price of 3,088 New Taiwan dollars on TSMC. The stock is down 0.4% at NT$2,430. (sherry.qin@wsj.com)
0259 GMT - Palm oil rises in Asian trading on expectations of lower production in Indonesia amid severe drought and wildfires linked to El Nino, AmInvestment Bank says in a note. Indonesia's planned higher biodiesel mandate could also reduce export availability and support prices, it adds. However, technical analysis suggests CPO futures bearish sentiment remains dominant and selling pressure may persist, it adds. AmInvestment Bank expects CPO futures to find support at 4,650 ringgit a ton and face resistance at 4,756 ringgit a ton. The Bursa Malaysia Derivatives contract for January delivery is 9 ringgit higher at 4,734 ringgit a ton. (yingxian.wong@wsj.com)
0251 GMT - J&T Global Express's 3Q parcel volume growth in China and new markets appears to please its bull at Nomura, who notes the former is above the overall industry's gains while the latter beat J&T's 2H guidance. The analysts raise their 2026 China parcel volume growth forecast to 12% from 9% and lift their projection for markets excluding China and Southeast Asia to 135% from 120%. However, volume growth in Southeast Asia slowed, likely due to a high base last year, supported by relatively aggressive campaign investments by major e-commerce players, they say in a note. They trim their 2026 parcel volume growth forecast for Southeast Asia to 51% from 54%. Nomura reaffirms its buy rating and target price of 14.00 Hong Kong dollars. Shares rise 2.9% to HK$9.25. (megan.cheah@wsj.com)
0248 GMT - TSMC is still best-placed in the AI arena, Citi analysts say in a research note. Strong advanced-chip demand into next year and long-term order visibility should support its higher capex cycle. The chip maker reiterated its 2026 capex guidance between US$60 billion- US$64 billion and sees significant upside through 2028. Although its overseas operation and 2-nanometer production ramp-up should dilute margins initially, TSMC's gross margin downside is manageable due to its cross-node leverage, high utilization and yields rates, they say. Given TSMC's robust demand outlook and visibility, Citi thinks the company is less vulnerable to recent macro concerns. The bank maintains its target price for TSMC at NT$4,000. Shares are down 0.2% at NT$2,435.00. (sherry.qin@wsj.com)
0238 GMT - NTT DC REIT may benefit from its aim to expand in Europe, says UOB Kay Hian's Jonathan Koh in a report. The REIT has a debt headroom of $261 million, which could be used to acquire a hyperscale 24-megawatt data center in Frankfurt in 2H FY 2027, the analyst says. The data center is anchored by two U.S.-based hyperscalers with a long weighted average lease expiry of 10 years and is expected to offer net-property-income yield of above 6%. The brokerage raises the unit's target price to US$1.31 from US$1.29 with unchanged buy rating. Units are unchanged at US$0.875.(ronnie.harui@wsj.com)
0222 GMT - Treasury Wine Estates needs to innovate on product and supply chains to drive a rerate of its stock, Jarden analysts say. They see a lot to like in the Australian vintner's latest update, albeit nothing to move their neutral rating or target price of 5.50 Australian dollars. They see emerging upside risk to their fiscal 2027 forecasts, but tell clients in a note that Treasury Wine needs to drive a stronger innovation agenda and better leverage its global supply chain if its stock is to rerate. As it is, they think risk reward is balanced. Shares are up 2.0% at A$6.06. (stuart.condie@wsj.com)
0218 GMT - Iron ore prices are higher in early Asian trade in a likely technical rebound. Iron ore recently traded below US$90 a ton for the first time since 2024 as fundamentals continue to weaken, ANZ Research analysts say in a research note. Better investor sentiment across different assets and markets after a sharp selloff in the previous session likely provide some support. However, Chinese crude steel output remain low amid thin margins for steel mills. As a result, there is no incentive to rebuild inventories of the steel making raw material, the analysts say. The most actively traded January iron ore contract on the Dalian Commodity Exchange rises 0.3% to 674.0 yuan a ton. (sherry.qin@wsj.com)
0207 GMT - Rising interest rates are a concern for HDB Financial Services' management, which is aiming to hold net interest margin at around 8% over the medium term, Nomura analysts say in a note. HDB plans to pass on the RBI's 25-basis-point October repo hike to floating-rate loan-against-property customers, with rate revisions in other segments to be calibrated. While 2Q net profit was below Nomura's estimate, the lending business was largely in line, and Nomura expects healthy disbursal momentum to continue. Nomura upgrades the stock to buy from neutral with a target price of 790 rupees. Shares closed 7.7% lower at 538.60 rupees. (venkat.pr@wsj.com)
0154 GMT - DigiCo's new 15-year contract for its SYD1 site is seen at UBS as a major derisking event for the Australian data-center operator. The investment bank's analysts tell clients in a note that the contract with an investment-grade global tech company effectively means that 78% of DigiCo's Australian growth trajectory is now contracted and fully funded. They also see it as positive that the reallocation of existing capacity to the new customer has not forced any change to fiscal 2027 earnings guidance. UBS keeps a buy rating on the stock and a target price of 3.60 Australian dollars. Shares are up 8.5% at A$2.17. (stuart.condie@wsj.com)
0154 GMT - DFI Retail Group may be hit by loss of earnings from Maxim's Caterers, RHB Research's Alfie Yeo says in a research report. The Asian retailer said that it's in the process of divesting its 50% stake in Maxim's, the analyst notes. RHB cuts its 2027 earnings forecast for DFI Retail Group by 6% on the loss of Maxim's earnings, and trims the stock's target price to US$4.93 from US$5.03. However, RHB maintains its positive stance on DFI Retail Group's medium-term earnings trajectory, partly because it' will assume Maxim's interest in Starbucks's operation across seven Asian markets. It keeps the stock's buy rating. Shares are 0.9% higher at US$3.35. (ronnie.harui@wsj.com)
0122 GMT - Press Metal Aluminium could report sequentially lower 3Q earnings as lower aluminum prices and higher raw material costs squeeze margins, Affin Hwang IB analyst Andrew Lim says in a note. He tips 3Q earnings to weaken to 500 million ringgit-600 million ringgit from 718 million ringgit in 2Q. Aluminum prices are expected to find near-term support from tight global supply, although momentum may moderate, he says. Higher carbon anode costs are expected to weigh on earnings, prompting Lim to cut his 2027-2028 earnings forecasts by 10%-11%. Affin Hwang downgrades Press Metal to hold from buy, and cuts its target price to 7.70 ringgit from 9.40 ringgit, citing less-favorable raw material price trends and a plateau in aluminium price momentum. Shares are 1.0% lower at 7.10 ringgit. (yingxian.wong@wsj.com)
0058 GMT - Treasury Wine Estates' successful sale of five noncore brands is immaterial but positive for the Australian vintner, Macquarie analysts say. They tell clients in a note that Treasury Wine is starting to build a track record that boosts conviction that management can successfully pivot the company's portfolio as planned. The fact that Treasury Wine made no change to its annual guidance is seen at Macquarie as an indication that the divested brands did not have a meaningful impact on earnings. The analysts think Treasury Wine now has 71 brands and further progress toward a target of about 30 would accelerate deleveraging. Macquarie raises the stock's target price by 3.6% to 5.70 Australian dollars and keeps a neutral rating. Shares are up 1.7% at A$6.04.
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