Hong Kong's three major stock indexes closed in positive territory on September 16. The Hang Seng Index edged up 0.19% to 24,713.78 points, the Hang Seng Tech Index gained 0.79%, and the Hang Seng China Enterprises Index inched forward by 0.02%.

Sector performance was notably mixed, with internet and tech stocks largely declining. Bilibili Inc (HK: 9626) fell by more than 2%, while Xiaomi Corp (HK: 1810) and Tencent Holdings Ltd (HK: 0700) each dropped over 1%. Conversely, Lenovo Group Ltd (HK: 0992) surged more than 8%.

Semiconductor stocks led the gains, with Shenzhen Longsys Electronics Co Ltd (SZ: 301308) climbing over 7%. Gold-related equities also strengthened, as Lingbao Gold Group Co Ltd (HK: 3330) advanced by more than 8%. In the lithium battery space, performance diverged, with Contemporary Amperex Technology Co Ltd (SZ: 300750) falling nearly 3% while CALB Group Co Ltd (HK: 3931) jumped over 6%.

The semiconductor sector's rally was mirrored across the region, as South Korea's KOSPI index closed up 90.71 points, or 1.37%, at 6,717.97 points. SK Hynix Inc (KRX: 000660) rose 4.08%, and Samsung Electronics Co Ltd (KRX: 005930) gained 2.01%.

Where the momentum originates

A September 14 report from Citi highlighted that as AI transitions from pure training and inference into an era of "continuous learning," demand for HBM, server DDR5, and enterprise solid-state drives (eSSD) is set to surge simultaneously starting in 2027. Citi projects the DRAM supply-demand ratio will worsen to -8.7% in 2027 and -9.7% in 2028, while NAND's ratio is expected to fall to -6.1% and -5.5% over the same period, with the supply-demand imbalance likely persisting through 2031.

In the gold sector, Lingbao Gold Group Co Ltd (HK: 3330) advanced over 8%. Analysts at Everbright Futures noted that gold prices are showing initial signs of stabilizing; however, the market remains cautious about the possibility of hawkish comments from Federal Reserve Governor Christopher Waller, tempering the rebound. Investors are now awaiting the upcoming interest rate decision due early tomorrow morning. Additionally, rising long-term U.S. Treasury yields are fueling some safe-haven demand, while the Fed finds itself in a policy dilemma—needing to raise rates to combat inflation yet risking a deeper recession by doing so. This scenario is providing the momentum for gold's continued recovery.

In the lithium battery sector, Contemporary Amperex Technology Co Ltd (SZ: 300750) fell nearly 3%, while CALB Group Co Ltd (HK: 3931) rose more than 6%. Media reports indicate that Li Auto Inc (HK: 2015) has shifted some of its models to batteries from Sunwoda and its own in-house development. Meanwhile, the newly launched Xiaomi Pengcheng N70 and N90 models have diverged from the CATL batteries used in the earlier SU7 and YU7, instead adopting Xiaomi's Longjia battery system with cells supplied by CALB and Sunwoda. Both automakers are reducing their reliance on CATL by bringing in additional suppliers like CALB and Sunwoda, as well as pursuing co-developed or self-manufactured battery strategies.