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

0716 GMT - Tencent's capital expenditure could rise to 260 billion yuan in 2027 from 210 billion yuan this year, say Macquarie analysts in a research note. Tencent's multilayer AI portfolio has delivered measurable gains in model capabilities and user adoption. However, the company's pre-payments for GPUs and components to support its AI initiatives will remain a near-term cost drag, they say.Macquarie expects slower games growth and tepid advertising and payment revenue in 3Q amid softer macro conditions. The bank maintains a neutral rating on Tencent and trims its target price to 435.00 Hong Kong dollars from HK$440.00. Shares last traded at HK$420.60. (sherry.qin@wsj.com)

0713 GMT - Minor International faces an earnings hit from rising interest rates overseas, ttb wealth securities' Siriporn Arunothai says in a research report. The Thai company's foreign-currency-denominated debt stood at 55% of total debt, comprising about 82% in euros, 6% in U.S. dollars, 6% in Australian dollars and 7% in other currencies, the analyst estimates. To factor in rising interest rates on Minor International's foreign-currency-denominated debt, the brokerage cuts its normalized profit forecasts for the hospitality, restaurant and lifestyle company by 3% for 2026, 8% for 2027 and 9% for 2028. It lowers the stock's target price to 32.00 baht from 35.00 baht with unchanged buy rating. Shares are unchanged at 20.40 baht. (ronnie.harui@wsj.com)

0711 GMT - Pennon Group's equity raise was higher than expected, RBC Capital Markets' Alexander Wheeler and Ziyad Jasimuddin write. The owner of South West Water said it would raise around 550 million pounds via a fully underwritten rights issue. A softening of return guidance and a proposed sale of PNN Power is aligned to market expectations, RBC adds. The rebased absolute dividend means Pennon is only slightly ahead of peers in yield terms, the analysts add. The dividend yield point means the re-rating opportunity from the strategy update is less clear than it otherwise would've been, RBC says. Shares are down 13%. (michael.hennessey@wsj.com)

0632 GMT - Higher policy rates won't derail a U.S. economy driven by a largely rate-insensitive artificial-intelligence capex cycle, says Sylvia Sheng, multi asset solutions lead portfolio manager at J.P. Morgan Asset Management. Financial conditions also remain supportive, with credit spreads still tight and corporate fundamentals remaining healthy, she adds. J.P. Morgan's constructive stance on equities is underpinned by solid nominal growth, low recession risk and a sustained AI capex earnings cycle, she adds. The U.S. remains the asset manager's core overweight as it offers the broadest and most durable exposure to the AI capex and adoption cycle, while earnings momentum has started to broaden beyond the initial AI beneficiaries, she says. J.P. Morgan continues to believe the AI capex build-out has ample room to run. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0631 GMT - Posco Holdings could face downside risk from weaker lithium prices as it diversifies beyond steel, say Cindy Park and Dongmin Lee at Nomura. The analysts cite the recent decline in lithium prices as a near-term risk for the South Korean steelmaker, which owns battery-material supplier Posco Future M. Lithium prices fell to $19,587 a tonne on Sep. 27 from $29,205 on May 12, they note. The company also faces a potential increase in China's steel output and exports, they add. Nomura downgrades the stock to neutral from buy and cuts its target price to 330,000 won from 450,000 won. Shares are 2.4% lower at 310,500 won. (kwanwoo.jun@wsj.com)

0549 GMT - Thai Union Group's operations are likely to perform better than previously expected by UOB Kay Hian, analyst Nichapa Ratchabandit says in a research report. Its gross margins should be higher than anticipated, with its 2H gross profit margin estimated at 19.5%-20.5% thanks to high average selling prices and manageable raw material costs, the analyst says. The company, which manufactures seafood products and pet food, should also benefit from high season for ambient and pet food businesses in 3Q and 4Q, respectively. The brokerage upgrades the stock's rating to buy from hold and raises the target price to 14.50 baht from THB13.30. Shares are 0.8% higher at THB12.60. (ronnie.harui@wsj.com)

0518 GMT - NTT stands to benefit from its subsidiary's mobile rate increases, Nomura's Daisaku Masuno says in a research report. The increases, announced in September, are slated to be introduced in December and will boost sales by around Y35 billion for fiscal year ending March 2027 and by about Y55 billion for next fiscal year, the analyst estimates. Meanwhile, growth in NTT's overseas data center business will probably act as a catalyst for modest share price growth from here. The brokerage raises the stock's target price to Y197 from Y194 to factor in the planned mobile rate increases, with unchanged buy rating. Shares are 1.1% higher at Y172.0.