The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0212 GMT - Malaysia's fiscal support could be doing the heavy lifting in sustaining consumer spending despite weaker sentiment, with private consumption growing 4.8% on year in 2Q, Hong Leong IB analyst Jonathan Ooi says in a note. The coming budget due Oct. 9 could extend support, alongside a possible minimum-wage increase, he reckons. Government utilities subsidies and potential cash aid should help consumer sentiment recover, while tourism provides another growth driver, he says. The return of F1 to Sepang during China's Golden Week could be a strong catalyst, he adds. Costs remain a key watch point, with fuel, freight, CPO and coffee prices rising amid the Iran war, Ooi says. Hong Leong maintains an overweight rating on Malaysia's consumer sector. AEON Co. (M) and Focus Point are its top picks. (yingxian.wong@wsj.com)

0139 GMT - Asian currencies continue to face some challenges, MUFG Bank's Michael Wan says in a research report. Higher oil prices have reinforced worries over inflation and tighter monetary policy, the senior currency analyst says. Also, Brent crude price has stayed above $100 a barrel, "presenting Asia's oil importers with a negative terms-of-trade shock and higher-for-longer global yields," Wan says. "We expect SGD and CNY to remain more defensive, while IDR and THB look more exposed if oil prices, U.S. yields and dollar strength remain elevated." Wan adds. The U.S. dollar is steady at 1.2779 Singapore dollars, little changed at 6.7120 onshore yuan, and flat at 33.60 baht, FactSet data show. (ronnie.harui@wsj.com)

0131 GMT - Australia's house price retreat since May has been sharp, but analysts still refer to it as "orderly." So far, very few mortgage borrowers have seen the value of their homes fall below the size of loan needed to purchase it. A solid job market and an undersupply of homes is also lending the housing market some support. Still, if the Reserve Bank of Australia delivers two further interest rates increases before the end of the year, taking the official cash rate to its highest level in nearly 20 years, the correction could become distressed. There's a lot riding on the RBA's policy meeting Tuesday, where a fourth interest rate rise for the year is expected to be announced at 0430 GMT. (james.glynn@wsj.com; X @JamesGlynnWSJ)

0117 GMT - The sharp repricing of Malaysian Government Securities might add another headwind to banks' 2H noninterest income, but the earnings and book-value impact could remain manageable, Hong Leong IB analyst Raymond Ng says in a note. The 10-year MGS yield has risen to 3.94% from 3.60% at end-June, with further volatility possible if U.S. rates remain elevated, he notes. Higher yields should eventually support investment income as banks reinvest maturing securities, but this benefit will take time to materialize, he says. AMMB and Bank Islam Malaysia are relatively more exposed to potential earnings pressure, while Bank Islam, AMMB and Public Bank have higher sensitivity to book value, he adds. Hong Leong keeps a neutral rating on Malaysia's banking sector, pegging Public Bank as 4Q's top pick. (yingxian.wong@wsj.com)

0028 GMT - JGBs edge lower in the morning Tokyo session, tracking overnight price declines in U.S. Treasurys. Japan's bond market may also be weighed down by rising oil prices that could spur a faster pace of BOJ rate increases. However, given the small size of the Japanese Finance Ministry's auction today of 40-year JGBs and the current 40-year yield level, the sale may produce a "neutral to slightly strong" outcome, SMBC Nikko Securities' senior Japan rates strategist Miki Den says in a research report. The ministry is scheduled to auction about 300 billion yen of 40-year JGBs. The 10-year JGB yield is 0.5bps higher at 3.090%. (ronnie.harui@wsj.com)

0025 GMT - Japanese stocks are lower in early trade as uncertainty about the Iran conflict and higher borrowing costs continues. Auto, steel and financial stocks are leading declines. Toyota Motor is down 2.6%, Nippon Steel is 3.3% lower and Nomura Holdings is down 2.8%. The dollar is at 157.45 yen, compared with Y157.63 as of Monday's Tokyo stock market close. Investors are closely watching developments in the Middle East, oil prices and bond yields. The Nikkei Stock Average is down 0.8% at 65373.77. (kosaku.narioka@wsj.com; @kosakunarioka)

2346 GMT - Asian currencies consolidate against dollar but may be weighed by rising oil prices that could prompt further Fed rate increases that bolster the appeal of U.S. fixed-income assets. "The U.S. and Iran remained far apart on a deal, with Iranian officials reportedly pessimistic about reaching an agreement before U.S. midterm elections in November," CBA's Carol Kong says in a research report. "The prolonged closure of the Strait of Hormuz threatens to sustain elevated energy prices, adding to inflation pressures and reinforcing the case for further Fed tightening," the economist and currency strategist adds. The dollar is little changed at 157.35 yen and is 0.1% lower at 1,358.27 won, LSEG data show. (ronnie.harui@wsj.com)

2345 GMT - Australian stocks look set to edge higher as investors wait on what is widely expected to be a resumption of interest-rate rises by the country's central bank. ASX futures are up by less than 0.1% ahead of Tuesday's session, suggesting that the S&P/ASX 200 benchmark index could lightly add to its week-opening 0.2% rise. Economists and traders expect the Reserve Bank to raise the cash rate by 25 basis points later Tuesday. Ahead of the open, REA Group said it had agreed to buy a 35% stake in an Ireland-based counterpart. Cochlear said it would defend a class action representing shareholders aggrieved at its profit forecasting over its last fiscal year. (stuart.condie@wsj.com)

2344 GMT - Asian currencies consolidate against the dollar but may be weighed by rising oil prices that could prompt further Fed rate increases that bolster the appeal of U.S. fixed-income assets. "The U.S. and Iran remained far apart on a deal, with Iranian officials reportedly pessimistic about reaching an agreement before U.S. midterm elections in November," CBA's Carol Kong says in a research report. "The prolonged closure of the Strait of Hormuz threatens to sustain elevated energy prices, adding to inflation pressures and reinforcing the case for further Fed tightening," the economist and currency strategist adds. The dollar is little changed at 157.35 yen and is 0.1% lower at 1,358.27 won, LSEG data show. (ronnie.harui@wsj.com)

2301 GMT -- Retailers in the U.K. have maintained promotions and reduced prices to help drive demand, keeping inflation lower than a year ago, according to a report by the British Retail Consortium and Nielsen IQ. For the period from Sept. 1 to Sept. 7, shop price inflation dropped to 1.4% compared with 1.5% in August. "Retailers have absorbed wave after wave of extra costs, but there is a limit to what businesses can shoulder," BRC's chief executive, Helen Dickinson, says. These include rising employment costs, energy bills and packaging taxes, she adds. The retail sector will still need to absorb cost increases wherever possible, as household budgets will get tighter in the final quarter of the year, the report says. (andrea.figueras@wsj.com)

2224 GMT [Dow Jones]--The Reserve Bank of Australia will likely further its campaign to tame inflation with an announcement of a 25 basis-point interest rate increase at 0430 GMT. The bank is expected to indicate further action is likely, taking the official cash rate to its highest level since 2008 by November. An increase will represent a second phase of the tightening cycle that has been forced on the RBA by the unresolved war in the Middle East. There are domestic forces at work also, but the biggest issue is soaring energy prices and the threat that inflation is again headed higher, not lower. (james.glynn@wsj.com; @JamesGlynnWSJ)

1953 GMT - U.S. bond market continue to sell off, pushing yields higher, as oil prices remain volatile amid conflicting headlines between the U.S. and Iran. The U.S. 10-year yield rose to 5.241%, the highest level since June 2007. The two-year U.S. Treasury yield reached 4.922%, its highest yield since May 2024. The 30-year Treasury yield touched 5.561% the highest yield since June 2002. Federal Reserve governor Lisa Cook said she expects continuing inflationary pressure from the build-out of artificial intelligence in the coming months. Tuesday brings a slate of Fed speakers who may weigh in on their decision to raise interest rates at the September meeting.