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

0803 GMT - Malaysia's Budget 2027 is expected to be mildly positive for markets, although tight public finances leave limited room for major spending increases, RHB analyst Alexander Chia says in a note. The proximity of the next general election raises expectations for measures supporting households, and social assistance should benefit the consumer staples, property, transport and healthcare sectors. However, if the general election is held before the budget is passed, the incoming administration could review and retable the budget, as happened with Budget 2023, he says. External risks could limit market upside, although strong domestic liquidity should provide downside support, he adds. RHB maintains its end-2026 KLCI target at 1750. The KLCI is 0.5% higher at 1695.74. (yingxian.wong@wsj.com)

0749 GMT - European chip stocks open sharply lower, tracking declines in Asia, after the leaders of some of the biggest AI companies said that they needed to slow development of the technology. Shares in Dutch supplier of chip-making equipment ASML Holding fall 4.2%, while those of smaller peers ASM International and BE Semiconductor Industries both shed more than 6%. German chipmaker Infineon Technologies drops 6.2%, and Milan-listed shares in STMicroelectronics are down 4%. Other suppliers to the chip industry, such as France's Soitec and Germany's Aixtron, fall 12% and 7.6%, respectively. While the AI lab leaders fell short of calling for a pause in development, their comments represent one of the clearest acknowledgements yet from within the industry that there might be limits to how fast capabilities can responsibly advance, strategists at Deutsche Bank say in a note.(adria.calatayud@wsj.com)

0740 GMT - Innovent Biologics' enlarged cash holdings and investment fair-value gains could bolster its earnings over 2026-2028, say DBS Group Research analysts in a note. The Chinese biopharmaceutical company's fair value of its investments such as wealth products increased in 1H, while its total cash is expected to rise to 29 billion yuan in December 2028 from 20 billion yuan in December 2025, they say. DBS raises its annual interest income projections by 76% over 2026-2028. It also lifts its 2026-2028 earnings estimates by 6%-21%. DBS reiterates its buy rating and 144.00 Hong Kong dollar target price on the stock. Shares are up 3.4% at HK$96.75. (megan.cheah@wsj.com)

0734 GMT - London's miners open lower Monday morning as oil prices rise and AI stocks tumble. Friday's U.S. consumer report also solidified expectations the Fed will increase interest rates, which could slow investment and cut demand for mined metals and minerals. Higher oil prices will eat into margins given miners are some of the world's largest consumers of diesel. Copper miner Antofagasta falls 2.4%. Glencore drops 2.01% while BHP's London-listed shares trade 1.7% lower. Rio Tinto's London shares are down 1.6%.(adam.whittaker@wsj.com)

0722 GMT - European energy stocks start the week higher as oil prices climb. Houthi rebels have seized key territory around the strategic Bab al-Mandeb Strait. This means the two most important energy corridors in the Middle East-including the Strait of Hormuz on the other side of the Arabian Peninsula-are under the sway of Iran and its allies. Drone attacks on Saudi Arabia's East-West pipeline have also increased supply fears. This pushes Brent crude 2.2% higher to $106.93 a barrel while WTI futures gain 2.2% to $102.23 a barrel. In London, BP gains 1.15% and Shell rises 1%. Spain's Repsol, Italy's Eni and France's TotalEnergies rise more than 1%. (adam.whittaker@wsj.com)

0720 GMT - European stocks largely are mixed at the open as chip stocks fall sharply on investor concerns the artificial-intelligence build-out will slow. Software and pharmaceutical names support the Europe-wide Stoxx 600, which trades flat. The Dutch AEX is flat, though ASML--Europe's most valuable company--falls 4.2%. Peers BE Semiconductor and ASM International drop 5% and 5.2%, respectively. The German DAX slips 0.1%, as data center-linked Siemens Energy sheds 4.2%. As chip stocks fall, software shares gain--in Paris, chip maker STMicroelectronics loses 3.2% while Capgemini jumps 5.05%. The CAC 40 falls 0.2%. London's FTSE 100 climbs 0.6%, driven by gains of around 4% for software groups Relx and Sage. GSK rises 2.5% after positive drug results. Italy's FTSE MIB falls 0.45%, while the Spanish IBEX 35 drops 0.3%.(josephmichael.stonor@wsj.com)

0643 GMT - The dollar rises to an 11-day high against a basket of currencies, buoyed by increased prospects of an interest-rate hike at this week's Federal Reserve meeting and by higher oil prices. Strong U.S. consumer-price inflation data last week came on the heels of strong U.S. jobs data, leading money markets to price in an 87% chance that the Fed will raise rates when it announces a decision on Wednesday, LSEG data showed. Meanwhile, intensifying Middle East tensions lift oil prices, benefiting the dollar due to its safe-haven status and because the U.S. is an oil exporter. The DXY dollar index rises 0.3% to a high of 99.453. The euro falls to a one-month low of $1.1549, LSEG data show. (jessica.fleetham@wsj.com)

0555 GMT - Entain has the ability to unlock value through further disposals, Berenberg analysts Jack Cummings and Luka Trnovsek write in a note. The sports-betting and gambling group holds leading but undervalued positions in several markets, they note. However, if shares price remains low, the company could consider value-accretive divestments to reduce its debt level and create value for shareholders, they say. "While other liabilities above net debt remain an investor concern, they are visible and well understood," they add. Overall, Entain's solid cash flow generation and capitalization support its ability to pay down its debt and pay down these liabilities. ( najat.kantouar@wsj.com)

0554 GMT - Antofagasta shares are attractively priced after last week's selloff, Berenberg analysts write as they upgrade their rating on the stock to buy from hold, and keep the target price unchanged at 44 pounds. Copper prices and equities slumped on reports that the U.S. still hasn't made a decision on refined copper tariffs. This removed some of the premium in copper prices. The London-listed Chilean copper miner has quality assets in a low-risk jurisdiction, they say. Forecast volume growth in 2027 and 2028 will help drive a rerating of the shares, the analysts write. Shares closed Friday at 37.90 pounds. (adam.whittaker@wsj.com)

0550 GMT - Digital Core REIT likely needs to reconstitute its portfolio further to expand its Asia-Pacific exposure and narrow its discount to its net asset value, says Citi analyst Brandon Lee in a note. The Singapore-listed real estate investment trust is selling stakes in U.S. data centers while raising its exposure to Asia-Pacific assets, he notes. While this improves its distribution-per-unit accretion, he notes Digital Core's portfolio is still heavily U.S.-dominated, which could cap its units' price performance given a hawkish U.S. interest rate outlook. He also reckons lower management fees in units would deliver better mid-term benefits than unit buybacks. Citi raises its target price to US$0.69 from US$0.68 and maintains a buy rating. Units are up 1.0% at US$0.485. (megan.cheah@wsj.com)

0548 GMT - AstraZeneca's new breast-cancer drug Etcamah failed a late-stage clinical trial, but this was largely anticipated and might trigger a muted market reaction, J.P. Morgan analysts say in a research note. While disappointing, the study results from the U.K. drugmaker don't come as a big surprise after Roche's rival drug giredestrant also missed the mark in a similar trial recently, the analysts say. Consensus forecasts of $1.8 billion in 2030 sales for Etcamah seem unlikely to change as a result of the trial data, they add. JPM expects AstraZeneca shares to fall by between 2% and 3% when the market opens Monday. AstraZeneca shares closed at 117.08 pounds on Friday. (adria.calatayud@wsj.com)

0540 GMT - Singapore Exchange faces pressure on earnings as moderating growth in derivatives and securities fails to justify the stock's premium valuation, Macquarie Equity Research analyst Jayden Vantarakis says in a note. Derivatives growth is normalizing from a high three-year base, the analyst says. Meanwhile, securities average daily value needs to rise to 2.9 billion Singapore dollars-S$3.5 billion to justify where the stock is trading, compared with the S$2.0 billion-S$2.2 billion range currently. Macquarie trims its 2027-2029 EPS estimates by 2% and downgrades the stock to underperform from neutral, citing a 30% premium to Hong Kong Exchanges & Clearing. It also cuts its target price by 22% to S$20.30. Shares are down 4.1% at S$23.30.