Most emerging Asian stocks slumped on Tuesday, driven by a sharp pullback in South Korea, while currencies in the region remained weak as uncertainty around the peace talk between Iran and the US.

The Hong Kong’s market have significantly underperformed Japan and South Korea. Goldman Sachs cut Hong Kong stocks in favour of mainland China AI hardware plays earlier this month.

The heavy weighting of internet and consumer tech firms such as Alibaba and Tencent, seen as lagging in the global AI rally, has contributed to the gauge's underperformance this year.

The technology and internet sector showed mixed Q1 financial results, with overall revenues and profits reflecting sustained AI investments and resilient consumer demand but facing headwinds from intense competition.

Hong Kong is in discussions with Chinese authorities to broaden cross-border investment channels and grant mainland investors access to local IPOs, according to Financial Secretary Paul Chan.

The focus is on easing eligibility criteria for investors, increasing the Southbound trading limits, and broadening the selection of available investment products.

EBC Financial Group analyst said the Hang Seng Index was locked in a strong, well-defined downtrend structure. Despite oversold signs, a decisive break below 23,500 could turn it to a major overhead resistance.

Asset recap

As of market close on 22 June, among EBC major products, Micron Technology shares led gains as AI memory demand continues to accelerate far beyond the company’s ability to produce chips.

Netflix shares tumbled to a 52-week low as investor sentiment soured following the streaming giant’s failure to acquire two major media properties in rapid succession.

Renewable energy investment is reported to exceed $700bn in 2026. Yet the industry's central challenge is changing. Grid bottlenecks, policy uncertainty and ESG outweigh funding.

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