The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

0203 GMT - Malaysia's equity market is likely to face a confluence of external and domestic hurdles through most of 2H, Hong Leong IB analyst Jeremy Goh says in a note. Headwinds include renewed Iran war risks, hawkish Fed expectations, the KLCI expansion overhang and potential general election jitters, he says. However, these headwinds are expected to be temporary and mostly subside by the year-end, allowing the market to recover, he reckons. Hong Leong cuts its end-2026 KLCI target to 1760 from 1770. Tenaga Nasional, Sunway and CelcomDigi are among its top picks. The KLCI is 0.3% higher at 1714.02. (yingxian.wong@wsj.com)

0159 GMT - It's possible that Anglo Teck--a planned tie-up of Anglo American and Teck Resources--will benefit from M&A "as either predator or prey," says Jefferies. The bank says the merged company will become one of the world's biggest and highest-quality copper miners, and has significant re-rating potential over the next two to three years. Jefferies expects a rotation out of other copper miners and into Anglo Teck, driving relative outperformance in the shares. "All things considered, and despite justifiably high expectations in the equity markets, Anglo continues to be one of our top picks in the sector," Jefferies says. "Our impression after spending time with the management team this week only reinforces this view." Jefferies thinks the merger could close before the end of this year. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0153 GMT - Petronas could maintain its net cash position this year and improve gross leverage, supported by higher oil prices and stronger upstream realizations, CreditSights analysts Nicole Chua and Lakshmanan R say in a note. Revenue and Ebitda are expected to rise by mid-teen percentages, while free cash flow should be aided by stable annual capital expenditure of about 50 billion ringgit, they say. Petronas' strong credit profile, state support and integrated operations should remain supportive. However, the prolonged dispute with Sarawak over petroleum and gas rights remains an overhang and could weigh on investment decisions and counterparties' confidence. CreditSights maintains a market perform recommendation and views Petronas' bonds as fairly valued versus Pertamina. (yingxian.wong@wsj.com)

0122 GMT - Keppel DC REIT's data-center deal should boost its growth profile and reinforce its focus on so-called hyperscale infrastructure, says Jefferies's Wilson Ng and Geraldine Wong in a note. The Singapore real-estate investment trust is buying a majority stake in two Japan data centers for around S$1.4 billion, implying an estimated net property income yield of 4.5%-5.0%, the analysts say, viewing this as attractive. They raise their 2027-2028 distribution per unit projections by around 2%. "The acquisitions should help [the REIT] sustain its industry-leading DPU growth track record," they add. Jefferies raises its target price to 2.70 Singapore dollars from S$2.65 and retains its buy rating. Units rise 0.5% to S$2.20. (megan.cheah@wsj.com)

0024 GMT - Japanese stocks are higher in early trade as recent bond selloffs ease. Trading houses and financial stocks are leading the gains. Mitsubishi Corp. is up 3.6% and Nomura Holdings is 2.5% higher. The dollar is at 158.94 yen, down from Y159.63 as of Wednesday's Tokyo stock market close, following weaker-than-expected U.S. private-sector jobs data. The 10-year Japanese government bond yield is down 4.5 basis points to 2.965%. Investors are tracking bond yields and crude oil prices as well as developments in the Iran conflict. The Nikkei Stock Average is up 0.1% at 64373.74. (kosaku.narioka@wsj.com; @kosakunarioka)

0007 GMT - Telstra gains a bull in Citi, which thinks its Ebitda--or earnings before interest, taxes, depreciation and amortization--could top market expectations because of stronger cost control. Citi also views Australia's largest telco as being well placed to deliver 5% year-over-year growth in mobile services in FY27, "with potential upside from stronger ARPU [average revenue per user] growth." While an inquiry into regional mobile coverage across Australia and a potential medium-term headwind to ARPU from proposed legislative changes are risks to consider, "we see Telstra as defensive in a soft macro environment," Citi says. It upgrades the stock to buy from neutral. It keeps a target price of 5.25 Australian dollars a share. The stock is up 0.2% at A$4.73. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2359 GMT - As China accelerates its semiconductor self-reliance, automakers with greater control over their chip supply could gain an edge in intelligent vehicles and emerging physical AI markets, according to a report by research firm Digitimes. Chinese automaker BYD's decades-long investment in chip design and manufacturing illustrates how control of key semiconductor technologies can boost competitiveness as export controls spur adoption of domestic alternatives, it says. Digitimes expects China's localization drive to expand from traditional automotive chips to smart-driving processors, while the convergence of the EV and robotics industries gathers pace. Expertise in AI chips, sensors, motors and control systems could create new opportunities as humanoid robots and other physical AI applications move toward broader adoption, it says. (jie.yang@wsj.com)

2359 GMT - Insilico offers one of the clearest tests of whether AI can expand pharma innovation beyond faster molecule design, Citi analysts. They start coverage with a buy/high-risk rating. Insilico has sustained preclinical candidate generation since 2021 across multiple therapeutic areas, supporting the repeatability of its AI-discovery process. The 15 partnerships with global firms it has disclosed have an aggregate headline contract value exceeding $11 billion and suggest it can convert hypotheses into development assets and commercial transactions at scale. Of the various clinical assets on track to validate Insilico's AI-driven drug design, Citi sees rentosertib--the first AIDD candidate in Phase III--as the biggest valuation catalyst. It sets a HK$85 target on the stock, which closed at HK$44.96. (fabiana.negrinochoa@wsj.com)

2347 GMT - Japanese stocks may remain rangebound as uncertainty over the Middle East and energy costs continues. Nikkei futures are up 0.1% at 64520 on the SGX. The dollar is at 158.84 yen, down from Y159.63 as of Wednesday's Tokyo stock market close, after weaker-than-expected U.S. private-sector jobs data. Investors are focusing on bond yields and crude oil prices as well as developments in the Iran conflict. The Nikkei Stock Average fell 2.9% to 64325.64 on Wednesday. (kosaku.narioka@wsj.com)

2329 GMT [Dow Jones]--The addition of a black box warning to the label of CSL's Injectafer is unlikely to have a big impact, according to Citi. The Food and Drug Administration approved revised labeling for the iron replacement medicine to warn of the risk of low levels of phosphate in the blood. "We do not think it will change much," says Citi. "Generics to Injectafer have become available over the last few weeks and, per FDA, are expected to update their labels also." Citi has a neutral rating and A$160/share target on CSL. The stock ended Wednesday at A$173.85. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2352 GMT [Dow Jones]--James Hardie Industries's share price has risen more than 50% from its May low, and its bull at Morgan Stanley thinks the rally has further to run. Analyst Joseph Michael said James Hardie's 1Q result increased confidence in its ability to deliver above-market growth despite a weak U.S. housing backdrop. Also early integration savings following its acquisition of AZEK and stronger cash generation are reducing risk around its balance sheet, MS says. "The stock has re-rated, but we still see upside as James Hardie executes on self-help initiatives, with additional optionality from a U.S. housing recovery," MS says. It rates James Hardie at overweight, with a A$48.00/share price target. James Hardie ended Wednesday at A$39.92. (david.winning@wsj.com; @dwinningWSJ)

2250 GMT - Australian stocks are poised to follow U.S. equities higher, after a rally in Treasury yields stalled. ASX futures are up by 0.4% ahead of Thursday's open, suggesting that the S&P/ASX 200 could snap its three-day losing streak. The benchmark index has lost 1.3% so far this week amid a global bond-market rout that's driving up borrowing costs. Shares including in BHP, Woodside, Coles and Ramsay Health Care will trade ex-dividend. In the U.S., the DJIA rose 0.6% while the S&P 500 and the tech-heavy Nasdaq Composite both added 0.5%.