The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0734 GMT - Thai banks' earnings are expected to decline 5% on year in 2026, though relatively attractive dividend yields could offset the risks, according to Maybank Securities (Thailand)'s Jesada Techahusdin. Retail and small- and medium-sized enterprise lending remain soft amid high household leverage and a slow recovery in incomes, the analyst says. Non-interest income for the sector is also expected to fall about 7%, reflecting a high base from investment gains during the interest-rate downtrend in 2025. Maybank keeps its neutral rating on Thailand's banking sector. The brokerage names Bangkok Bank as its top sector pick, citing its capacity to raise dividends and long-term growth prospects through overseas operations.(amanda.lee@wsj.com)

0654 GMT - U.S. Treasury yields trade lower in the Asian afternoon, reversing the previous day's moves amid caution ahead of labor market data. December's ADP employment report and November's JOLTS report are due for release on Wednesday, ahead of Friday's official employment data. Geopolitical developments surrounding Venezuela continue, with U.S. President Trump demanding countries to partner exclusively with the U.S. on oil, including China, Russia, Iran and Cuba. The two-year Treasury yield falls 1 bp to 3.462%, while the 10-year yield declines 2 bp to 4.158%, according to Tradeweb. (emese.bartha@wsj.com)

0630 GMT - IDFC First Bank's earnings momentum appears strong, Nomura analysts say in a research report. The Indian bank has built a robust liabilities franchise and shifted from a wholesale-led lender to a retail-focused model, the analysts say. The bank's growth visibility remains strong, with its loans and deposits expected to post CAGR growth of 20% and 22%, respectively, over FY 2026-2028. Its sustained loan growth, operating leverage and moderating credit costs underpin a clear earnings trajectory for the bank over FY 2026-2028. Nomura initiates coverage of the stock with a buy rating and a target price of INR105.00. Shares are 0.3% higher at INR84.99. (ronnie.harui@wsj.com)

0523 GMT - HSBC's non-interest income growth momentum is likely to remain strong in 2026 and 2027, says Manyi Lu of DBS Group Research. The lender's wealth segment appears robust, supported by solid net new invested assets, Lu said. A strong Hong Kong capital-markets environment should also bolster noninterest income, she adds. Any downside risks to net-interest income are likely to be offset by tailwinds such as structural hedging and lower funding costs, the analyst adds. DBS raises its earnings expectations by 2% for 2026 and 7% for 2027, reflecting HSBC's updated net-interest-income guidance. DBS lifts its target price to HK$139.20 from HK$113.70 and reiterates its buy rating. HSBC shares are 1.5% lower at HK$126.90. (megan.cheah@wsj.com)

0435 GMT - The outlook for Chinese insurance sector appears to be improving, says Ken Shih of DBS Group Research. He expects the yuan to continue a mild appreciation, which should support insurers' investment income. China's regulatory environment is also likely to remain favorable in FY 2026, while the government's campaign to curb price wars could also help support bond yields, the analyst adds in a note. DBS's top picks are Ping An Insurance and AIA Group, citing their higher contractual service margin exposure relative to peers. DBS raises its H-share target price for Ping An to HK$85.00 from HK$72.00 and for AIA to HK$106.00 from HK$103.00, maintaining buy ratings on both. Ping An H-shares are last down 0.35% at HK$71.75, while AIA shares are 0.9% lower at HK$85.25. (megan.cheah@wsj.com)

0428 GMT - Malaysia's banks should start 2026 with sound fundamentals, RHB IB analyst David Chong says in a note. Corporate banks are likely to benefit from a strong loan pipeline, while the repricing of deposits from policy rate cut last year could pave the way for improved net interest margins, especially in 1H, he says. The NIM momentum could continue into 2H if banks stay disciplined on funding, he reckons. Bank Negara's new capital framework on credit risk from mid-2026 could unlock some banks' excess capital which could be returned to shareholders, with Hong Leong Bank and Public Bank as main beneficiaries, he adds. RHB maintains an overweight rating on Malaysia's banking sector, pegging Hong Leong Bank, CIMB Group and Public Bank as its top picks. (yingxian.wong@wsj.com)

0341 GMT - Singapore's benchmark FTSE Straits Times Index risks near-term profit-taking if it climbs an additional 1.0%-3.0%, says DBS Group Research in commentary. The index has risen around 2.0% since the year started, thanks to bank stocks, the analysts say. It trades above 14.8X its 12-month forward price-to-earnings ratio, which is elevated against its 10-year average, they add. The STI's yield spread over the Singapore government 10-year bond has also narrowed to around 2.4% from around 3.2% six months ago. Traders should consider selling large-cap stocks that have limited fair-value upside, given higher odds of the index correcting as the results season nears. These include Oversea-Chinese Banking Corp. and Singapore Exchange. The STI is flat at 4741.49. (megan.cheah@wsj.com)

0222 GMT - Singapore real-estate investment trusts are likely entering a two-year earnings upgrade cycle, say DBS Group Research analysts in a note. The city-state's benchmark three-month lending rate appears close to three-year lows, they say. This likely translates to an around 2.5% rise in Singapore REITs' distributions per unit, given lower interest expenses, they add. The country's real estate remains defensive amid a moderating global economy, boosted by landlord-friendly fundamentals and supply scarcity, the analysts note. Their sector preferences in order are office, industrial, retail and hospitality. In particular, the Grade A office space offers the strongest upside given a multi-year supply drought and improving landlord pricing power, the DBS analysts say. (megan.cheah@wsj.com)

0211 GMT - Singapore banks' performance in 2026 is likely to be mixed, RHB Research's Singapore team writes in a note. "In the absence of a meaningful rise [in return on equity], headroom for further valuation expansion may be limited, resulting in more modest returns for the sector ahead," RHB says. Net interest income is also expected to remain subdued, due to lingering net interest margin pressure from more Federal Funds rate cuts. However, the wealth management business is expected to be a key driver, amid strong liquidity inflows, a low-interest-rate environment, and positive investor sentiment. RHB maintains a neutral rating on Singapore's banking sector and pegs DBS as its top pick.(amanda.lee@wsj.com)

0148 GMT - Tisco Financial Group may benefit from Thailand's Motor Expo 2025, which occurred from Nov. 28 to Dec. 10, UOB Kay Hian analysts say in a research report. The total number of new cars booked during the event was 75,246, the analysts note. Management has announced plans to resume growth of its new-car hire-purchase portfolio, and the Thai bank is likely to benefit from the strong car bookings during this event and in the future. The brokerage raises the stock's target price to THB105.00 from THB102.00 after fine-tuning its 2025-2027 earnings forecasts for the company, with an unchanged hold rating. Shares last closed at THB109.50. (ronnie.harui@wsj.com)

0007 GMT - Morgan Stanley analysts expect shares of Australia's four largest banks to derate over 2026 against a backdrop of persistent inflation and potential interest-rate hikes. The MS analysts observe that the lenders' price-to-earnings multiples have rerated by an average six basis points since late 2023, which they say reflects cuts to the cash rate by the Reserve Bank of Australia. They tell clients in a note that they see this momentum reversing in 2026. At the end of December, Commonwealth Bank had the highest multiple of the quartet on a one-year forward basis at 25.1 times earnings, they add. ANZ had the lowest, at 14.7. (stuart.condie@wsj.com)

2355 GMT - Judo Capital's share price should get support from the Australian business lender's reiteration of its annual guidance, Morgan Stanley analysts say. They tell clients in a note that Judo's recent confirmation that loan-book growth is on track to hit full-year guidance should reinforce consensus forecasts, with the December quarter's A$500 million increase in line with analysts' estimates. Noting that Judo's pre-tax profit is also on course to fall within the lender's guidance range, the MS analysts think that the company will meet its 1H margin guidance of 3.0%. MS has a last-published overweight rating and A$2.15 target price on the stock, which is up 0.6% at A$1.735. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

January 07, 2026 04:20 ET (09:20 GMT)

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