Hong Kong's three major indices staged an afternoon recovery. By the close, the Hang Seng Index rose 0.3% to 24,345.22, the Hang Seng Tech Index fell 0.79%, and the China Enterprises Index gained 0.08%.

On the board, tech stocks were mostly lower, with Lenovo and JD.com dropping more than 3%, while Xiaomi gained over 2%; gaming stocks rose broadly, with Galaxy Entertainment up more than 3%; oil stocks were active, with PETROCHINA (00857) up over 3%; memory-related concept stocks were sluggish, with the CSOP SK Hynix Daily Leveraged (2x) product plunging more than 17%.

Gaming stocks rise broadly, Galaxy Entertainment up over 3%.

Citi previously reiterated its October gaming revenue forecast of MOP 25 billion, with average daily gaming revenue of MOP 806 million, up 4% year-on-year. Citi believes that with multiple large-scale entertainment events coming to Macau, including the NBA China Games, concerts by Zhang Liangying, K-pop group Enhypen, and Richie Jen, this will provide support for gaming stock revenues after the National Day Golden Week holiday.

Oil stocks active, PETROCHINA up over 3%.

Middle East tensions remain elevated, with Brent crude hovering at the high of $105. Houthi forces claimed Saudi Arabia launched 119 airstrikes within 24 hours, and flights over Riyadh were nearly nonexistent. Notably, benefiting from rising oil prices, Petrochina Company Limited (601857) saw its first-half net profit increase 22% year-on-year, with second-quarter net profit rising 15% quarter-on-quarter.

Memory concept stocks sluggish, CSOP SK Hynix Daily Leveraged (2x) product down over 17%.

On Tuesday, Asian tech stocks suffered a new round of systemic selling, as weakness in the U.S. semiconductor sector overnight transmitted to Asia-Pacific markets. The Nikkei 225 closed down 1.82% at 67,777.52 points. South Korea's KOSPI closed down 5.46% at 6,035.34 points. Morgan Stanley noted that the AI-driven memory super-cycle is still ongoing, with prices and earnings expected to remain strong, but upside for memory stocks will be limited by optimistic expectations being fully priced in. Memory stocks appear cheapest at the cycle peak, but a low P/E ratio does not necessarily mean undervaluation, as share prices often peak before earnings peak: about 4 months early in 2008 and 2012, and about 8 months early in 2018. As new capacity gradually comes online in the second half of 2027, supply-demand changes may trigger a cycle turning point.