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

0835 GMT - Hermes continues to defy market headwinds and to outperform its industry rivals, AlphaValue analyst Jie Zhang writes in a research note. "Hermes maintains a 'forever' long waiting list for its classic collections," the analyst says. The French luxury company's own production capacity and the limited availability of the rare raw materials remain the only factors capping growth, she says. The group's planned price increases from 6% to 7% in 2025, combined with its midterm strategy to expand leather goods production, signals another strong year of revenue growth ahead, Zhang says. AlphaValue upgrades the stock to reduce from sell. Shares are down 1% at 2,709 euros. (andrea.figueras@wsj.com)

0826 GMT - More expansive fiscal policies in Europe in order to boost defense spending could lift the euro as they stimulate a weak economy and reduce the likelihood of hefty interest-rate cuts by the European Central Bank, Commerzbank's Ulrich Leuchtmann says in a note. The euro initially reacted negatively to U.S. President Trump's talks with Russia's Vladimir Putin and his lack of support for Ukraine, but the currency market has reconsidered this, he says. "Investment in Europe is also more attractive if the risk of being overrun by Russian troops in the near future is reduced by reliable own defense," he says. The euro recovers to trade at $1.0403, having hit a two-week low of $1.0359 on Friday, according to FactSet. (jessica.fleetham@wsj.com)

0826 GMT - Sheng Siong Group is poised for a stronger performance in 2H this year and 1H next year, thanks to the timing of the Singapore government's voucher distribution, DBS Group Research analysts say in a note. The cash voucher handouts could accelerate a consumer shift toward eating at home rather than dining out, they write. While the supermarket-chain operator isn't actively attracting voucher usage, its competitive pricing should drive consumer spending at its stores, they say. DBS raises its 2025 revenue forecast for Sheng Siong to S$1.54 billion from S$1.52 billion, citing factors including new-store openings last year. It also increases the stock's target price to S$1.90 from S$1.80 while maintaining a buy rating. Shares are flat at S$1.64. (amanda.lee@wsj.com)

0804 GMT - Liquidity concerns over Srisawad Corp. appear excessive, Maybank Securities (Thailand)'s Jesada Techahusdin says, citing the financial services provider's statement that there's no liquidity issue. The Thai company has a THB6.3 billion available credit line with banks and plans to draw down a $100 million syndicated loan this year, the analyst says in a note. Its share price should rebound as these liquidity concerns ease, especially given that the stock has been over-penalized, says the brokerage, which upgrades Srisawad to buy from hold. However, the brokerage lowers its 2025-2026 earnings forecast for the company by 3%-4% to reflect lower-than-expected revenue growth and trims the target price to THB40.00 from THB41.00. Shares are unchanged at THB34.50. (ronnie.harui@wsj.com)

0751 GMT - Bitcoin rises sharply and could extend its recovery after President Trump announced the creation of a U.S. strategic crypto reserve, XTB's Kathleen Brooks says. "Ironically, a [cryptocurrency] that was designed to be isolated from government interference and decentralized, is now reliant on the U.S. government for its fortunes," she says. Investors in the options market are betting on further gains for cryptocurrencies following Trump's announcement. Bitcoin could rise back to $100,000 as part of a broad-based recovery in crypto, she says. Bitcoin rises 9.3% to $92,090, according to LSEG. It reached a three-and-a-half-month low of $78,273 on Friday. On his Truth Social platform Sunday, Trump said the crypto reserve would include bitcoin, ether, XRP, Solana's SOL token and Cardano's ADA. (renae.dyer@wsj.com)

0745 GMT - Nordic markets are seen opening slightly higher with IG calling the OMXS30 up 0.2% at around 2730. Geopolitical challenges dominate the news flow, but the market is trying to see through the problems ahead of a busy week, Jyske Markets says in a note. "Although Friday's open-air row between Zelensky and Trump and the subsequent leaders' meeting in London dominate the newsflow, it is Trump's tariff threats that initially occupy the markets the most." There is the risk that the U.S. implements tariff increases on Mexico, Canada and China tomorrow, and on top of that this week includes a eurozone rate decision, U.S. jobs data and a speech by the Fed's Powell. OMXS30 closed at 2724.70, OMXN40 at 2695.84 and OBX at 1411.46. (dominic.chopping@wsj.com)

0734 GMT - Chinese shares ended mixed, as investors stayed cautious ahead of the country's National People's Congress meeting this week. The date when Trump's additional tariffs on China take effect coincides with the opening of China's NPC, adding to anticipation over Beijing's policy responses to support growth, OCBC analyst Tommy Xie said in a note. Resource stocks broadly rose, with Zijin Mining gaining 1.9% and Aluminum Corp. of China advancing 2.2%. Home appliance stocks led the losses, with Midea Group down 2.8% and Gree Electric Appliances slipping 1.2%. The benchmark Shanghai Composite Index edged 0.1% lower to 3316.93, the Shenzhen Composite Index rose 0.3% and the ChiNext Price Index gained 1.2%. (sherry.qin@wsj.com)

0732 GMT - European stocks are expected to open higher with the DAX rising 0.6%, the CAC 40 up 0.5% and the FTSE 100 up 0.6%, according to IG. Leaders from more than a dozen countries agreed at a London summit to create a "coalition of the willing" to provide security guarantees for a Ukraine peace deal. Increased defense spending from this coalition should provide a economic boost and accelerate technological advancements, Swissquote Bank analyst Ipek Ozkardeskaya says in a note. "Appetite for the European defense stocks will certainly remain solid." Elsewhere, U.S. commerce secretary, Howard Lutnick, said Sunday that tariffs on Canada and Mexico would take effect Tuesday but President Trump would determine whether to push ahead with the planned 25% levy.(renae.dyer@wsj.com)

0712 GMT - Singapore Technologies Engineering's "proactive steps" to pursue M&A and intensify investments into future growth areas position the company for mid- to high-single-digit revenue growth over the long term, DBS Group Research analyst Jason Sum says in a note. ST Engineering's record order backlog underpins earnings visibility, while organic expansions and faster project deliveries should also support growth, he says. The engineering company's valuations seem undemanding due to sound fundamentals, Sum says, adding that the stock could see a re-rating in the near term. Sum remains bullish on the stock and keeps ST Engineering as the top pick in the Singapore aviation sector. DBS raises its target to S$6.00 from S$5.40 while maintaining a buy rating. Shares rise 7.8% to S$5.83. (hoishan.chan@wsj.com)

0701 GMT - Lai Yih Footwear's order visibility over 2025-2026 looks bright, thanks to stronger order inflows from clients including Adidas, Daiwa Capital Markets analysts say, citing a site visit and their own research. The Taiwanese footwear manufacturer is poised to aggressively expand its capacity and client portfolio, leveraging its solid production execution capabilities compared with other Taiwanese footwear players, the analysts say in a note. Lai Yih Footwear aims to expand footwear production capacity by 15%-20% over 2025-2026, they add. The brokerage initiates coverage of the stock with a buy rating and a target price of NT$560.00. Shares closed 4.1% lower at NT$422.00. (ronnie.harui@wsj.com)

0642 GMT - Japanese stocks ended higher following Friday's selloffs and as concerns about borrowing costs have ebbed for now. Heavy industry and auto stocks led the gains. IHI advanced 7.8% and Toyota Motor gained 3.9%. The Nikkei Stock Average rose 1.7% to 37785.47 following Friday's 2.9% drop. USD/JPY is at 150.41, compared with 150.62 late Friday in New York. Investors are focusing on any developments in U.S. trade and foreign policies and their implications for Japanese businesses. The 10-year Japanese government bond yield rose 3.5 basis points to 1.405%. (kosaku.narioka@wsj.com; @kosakunarioka)

0642 GMT - U.S. President Trump's tariffs on China were "seemingly soft" but tactical, with his trade policy expected to take center stage in the coming months, Nomura analysts write in a note. Markets have potentially underestimated his "resolve to curb China and his intent on pursuing bolder measures in his second term," they write. His focus on domestic agenda, border policies and the peace deal between Russia and Ukraine was also tactical and doesn't signal a shift in strategic priorities, they say. Nomura analysts estimates the average U.S. tariff rates to China to be lifted to approximately 33%, following the latest announcement of an additional 10% tariff. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

March 03, 2025 03:36 ET (08:36 GMT)

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