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

0212 GMT - The expansion of the KLCI to 50 constituents from 30 looks structurally positive, Citi analyst Megat Fais says in a note. The expansion is likely to improve market representation and sector diversification, reducing financials' weight to 36.6% from 42.7% while increasing exposure to the technology, consumer discretionary and industrial sectors, he says. The phased inclusion of the 20 new constituents over December 2026 and June 2027 should limit market disruption and front-running, he reckons. FTSE Russell backtests suggest the 50-stock index could outperform the current framework by 60 basis points annually, albeit with a 10 bp lower dividend yield, he adds. Citi rates potential new constituents including Eco-Shop Marketing, Frontken, Genting Bhd. and Inari Amertron at buy. (yingxian.wong@wsj.com)

0154 GMT - Horiba is expected to continue capturing further growth in the semiconductor field, say Jefferies analysts in a note. The Japanese precision instruments maker's earnings are reaching record highs, driven by its semiconductor segment, the U.S. bank says. Horiba has commenced operations at its new Fukuchiyama plant in Kyoto, aiming to boost production capacity of mass flow controllers, which are used to regulate gas flow rates in chip making. The Japanese company in August raised its 2028 operating profit target to Y90 billion from Y80 billion, driven by an upgrade in its advanced materials and semiconductor business. Jefferies maintains a buy rating and a target price of 35,000 yen on Horiba. Shares are 2.1% lower at Y22,490. (kosaku.narioka@wsj.com; @kosakunarioka)

0142 GMT - Solar Industries and Astra Microwave are among the top defense companies benefiting from India's higher government spending and a push for private partnerships, Jefferies analysts Lavina Quadros and Shirom Kapur say. With the private-sector share rising in defense, the analysts estimate Solar and Astra's earnings will increase at compound annual growth rates of 31% and 19%, respectively, through FY2026-2030. Jefferies initiates coverage of the two with buy ratings and target prices of 28,160 rupees and 2,055 rupees, respectively. It also starts coverage of state-run Bharat Dynamics with a hold rating and target price of 1,280 rupees. (venkat.pr@wsj.com)

0126 GMT - Malaysia oil and gas sector is trading below their historical valuation levels, at 10X forward price-to-earnings, Affin Hwang IB analyst Ong Tze Hern says in a note. However, scope for a broad-based re-rating could remain limited until domestic job flows improve, he says. Near-term oil prices should stay supported by prolonged Middle East disruptions, prompting him to raise 2026 Brent forecast to $85/bbl from $81/bbl. But current oil price strength is unlikely to mark a structural upcycle, with Brent expected at $70/bbl in 2027 as Middle East supply normalizes. Resolving the Petronas-Petros issue and recovering Petronas capital expenditure could be more meaningful catalysts for domestic oil and gas services. Affin Hwang maintains a neutral sector's rating, pegging Dialog and Bumi Armada as top picks. (yingxian.wong@wsj.com)

0109 GMT - Miniso Group's 2026-2027 core profit could be pressured by slower-than-expected overseas sales growth and larger-than-expected margin dilution from directly-operated stores, say DBS Group Research analysts in a note. The Chinese lifestyle retailer's latest guidance was more cautious, reflecting restructuring in Europe where it aims to close 100-110 underperforming distributor stores, they say. The company's profitability could continue to be weighed by the shift toward directly-operated overseas stores and higher selling expenses, they say. The analysts cut their 2026-2027 core profit estimates by 23%-32%. Still, concerns around Miniso's margins are likely priced into its shares, the analysts add. DBS cuts its ADR target price to $12.00 from $20.00 but maintains a buy rating. ADRs last closed at $9.56. (megan.cheah@wsj.com)

0101 GMT - Investor feedback suggests iron-ore prices have been resilient, says Morgan Stanley. But it doesn't necessarily agree. "Headline CFR [cost and freight] iron-ore prices are being supported by higher freight, giving an impression of higher netback prices for the iron ore miners, which are in fact significantly lower" on-year, MS says. Fortescue and Mineral Resources are most impacted when factoring in current iron-ore prices and freight rates, it says. MS isn't upbeat on the outlook for iron-ore prices, either. "We expect iron ore to weaken into 2H, and see little reason for the market to be excited about iron ore at present," it says. MS forecasts benchmark iron ore at $92/metric ton in 4Q. The spot price is $100.05/ton, according to S&P Global Energy. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0026 GMT - CTF Services is expected to report broadly flattish FY2026 attributable operating profit when it announces results later this month, Citi analyst Timothy Chau says. Financial-services growth is offset by weaker contributions from logistics and construction, he says in a note. CTFS shares have weakened on sentiment surrounding CTF Life's Hong Kong insurance business, amid fears that Beijing's outbound investment curbs could deter Mainland Chinese visitors. Citi cuts its target price to 10.30 Hong Kong dollars from HK$10.90 after lowering its 2026-2028 estimates for attributable operating profit. The bank maintains a buy rating on the stock. Shares closed 0.5% lower at HK$8.02 on Monday. (venkat.pr@wsj.com)

0010 GMT - Japanese stocks are lower as uncertainty over the Middle East conflict and the Fed policy persists. Electronics, machinery and auto shares are leading declines. Murata Manufacturing is down 4.1%, Mitsubishi Heavy Industries is 2.5% lower and Toyota Motor is down 2.3%. The dollar is at 153.80 yen, down from Y155.69 as of Monday's Tokyo stock market close. Investors are closely watching crude oil prices and bond yields as well as any developments in the Iran war. The Nikkei Stock Average is down 0.6% at 66019.90. (kosaku.narioka@wsj.com; @kosakunarioka)

2345 GMT - Japanese stocks may decline as uncertainty over the Middle East conflict and the Fed policy continues. Nikkei futures are down 0.9% at 65860 on the SGX. The dollar is at 153.96 yen, down from Y155.69 as of Monday's Tokyo stock market close. Investors are focusing on crude oil prices and bond yields as well as any developments in the Iran war. The Nikkei Stock Average rose 2.1% to 66399.84 on Monday. (kosaku.narioka@wsj.com)

2324 GMT - Australian stocks are set to begin trading a tad lower, with ASX futures down by 0.1% ahead of Tuesday's open. The S&P/ASX 200 has been lacking direction with U.S. investors on break for Labor Day. The benchmark index closed 0.1% higher Monday. Shares including BlueScope Steel, Mineral Resources, News Corp and Regis Healthcare will trade ex-dividend. After Monday's close, Santos said it has agreed to buy an additional 3.3% interest in Papua LNG from TotalEnergies. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2301 GMT - U.K. retail sales had a disappointing end to the summer season, as consumer demand cooled off in August, according to a report from the British Retail Consortium and KPMG. For the period from Aug. 2-29, total retail sales in the U.K. rose 0.7% on year, according to the data. "With the cost of households bills rising, and set to rise further, many shoppers have clearly been tightening their belts," BRC's Harvir Dhillon says. Retailers' focus is now on the back-to-school period, with planning for the final quarter of the year and the lead-in to Black Friday month under way, the report says. (andrea.figueras@wsj.com)

2252 GMT - While currency exchange rates are a potential headwind to Megaport, Citi views the cloud connectivity provider's FY27 guidance as conservative. Megaport has guided to a A$305 million-A$405 million range for FY27 revenue from its Latitude.sh acquisition, Citi says. This wide range has ledinvestors to question whether strategic contracts are delayed. "We see the guidance as conservative especially when considering that closing FY26 annualized recurring revenue included A$14 million from the strategic contracts (which is ahead of schedule)," analyst Siraj Ahmed says. So, the guidance range is likely to be about providing flexibility for potential procurement or deployment delays, Citi says. It forecasts Latitude revenue of A$370 million. Citi retains a buy call on Megaport, and raises its price target by 11% to A$24.60/share. Megaport ended Monday at A$17.13.