The Hong Kong Hang Seng Index was at 23,482.58 points at 9:00 a.m. on June 24 (Wednesday), up 0.6% from the previous trading day, reversing the sharp sell-off seen in US stocks overnight. The overnight decline in US stocks was triggered by two forces: growing concerns in the market that valuations of AI-related stocks are rising too fast, and a chain reaction of selling pressure caused by the concentrated unwinding of leveraged positions in South Korean semiconductor-related holdings, with the Nasdaq 100 closing down 3.3% that day.
Nasdaq 100 closes down 3.3%; KOSPI triggers circuit breaker and then rebounds more than 4%
US stocks saw a major sell-off on Tuesday. The Nasdaq 100 index closed down 3.3%, driven by ongoing intensifying concerns in the market about valuations of AI-related stocks, combined with a chain reaction triggered by the concentrated unwinding of leveraged positions in South Korean semiconductors.
South Korea’s KOSPI (Korean Composite Stock Price Index) was especially volatile during Asian trading hours: the index plunged 10% intraday on Tuesday, briefly triggering the circuit breaker mechanism, before rebounding more than 4%. Japan’s Nikkei 225 index in the same period saw little change.
Micron’s earnings to be released later; earnings data covers the current state of AI infrastructure demand
Micron Technology will release its quarterly earnings later on Wednesday. In the earnings, order volumes, shipment volumes, and forward guidance are important data sources for the market’s assessment of the state of global AI capital expenditures. Micron is one of the world’s leading memory chip manufacturers, and its earnings results each quarter are closely tracked for trends in AI infrastructure demand.
Frequently Asked Questions
Why did the Hang Seng Index manage to reverse the overnight decline in US stocks on Wednesday?
Based on market data at 9:33 a.m. on June 24, 2026, the Hang Seng Index rose 0.6% to 23,482.58 points, while the Hang Seng Tech Index rose 1%. The report said the rebound in the Hong Kong market contrasted with the sell-off in US stocks overnight driven by AI valuation concerns, while the CSI 300 index fell slightly by 0.1% over the same period, showing divergence between Hong Kong stocks’ performance and that of A-shares that day.
What is the direct cause of KOSPI triggering the circuit breaker mechanism?
The KOSPI plunged 10% intraday on Tuesday, triggering the circuit breaker. The cause was widespread concern about valuations in AI technology stocks, compounded by the concentrated unwinding of leveraged positions related to South Korea’s semiconductors, leading to large-scale selling in the short term. After the circuit breaker, the Korean stock market rebounded by more than 4%, recording the largest intraday volatility during Asian trading hours.
Why did Micron Technology’s earnings become the market focus at this time?
Micron Technology is a major global memory chip manufacturer. Demand and shipment data in its quarterly earnings are viewed by the market as a key indicator for whether AI infrastructure investment demand is staying strong. The earnings are scheduled to be released later on Wednesday, June 24, 2026.
