HK Stock Market Move | The decline in storage concepts is significant, and the revenue guidance from US storage giants falls short of expectations, resulting in a transmission of sluggish sentiment to the Asia-Pacific market.

The decline in storage concepts is notable. As of the time of publication, Southern Double Long SK Hynix (07709) fell by 15.72%, trading at HKD 32.82; CSOP Samsung Electronics Daily (2x) Leveraged Product (07747) dropped by 12.1%, trading at HKD 61.48; Montage Technology (06809) decreased by 3.62%, trading at HKD 260.2; and GigaDevice Semiconductor Inc. (03986) fell by 2.47%, trading at HKD 474. On the news front, the two major US storage chip giants, SanDisk and Western Digital, have successively released their fourth-quarter financial reports for fiscal year 2026. Although their revenue and profits exceeded market expectations during this period, the guidance for next quarter's performance did not meet the market's high growth expectations for AI storage. In after-hours trading, SanDisk's stock plummeted over 8%, and Western Digital dropped about 11%. The pessimistic sentiment surrounding US storage stocks quickly transmitted through the supply chain to the APAC market, dragging down the entire APAC stock market. This morning, South Korea's KOSPI index fell more than 5% during the session, triggering the SIDECAR mechanism, leading the exchange to pause programmed sell orders for about 5 minutes; SK Hynix once dropped over 9%, while Samsung Electronics fell more than 6%.