23.07.202601:36:13UTC+00South Korean Shares Climb on AI Optimism

The benchmark KOSPI climbed more than 3% to around 7,035 on Thursday, extending its rally to a third consecutive session as technology stocks led gains. Sentiment improved on renewed optimism over artificial intelligence after Alphabet posted better-than-expected quarterly revenue, supported by strong growth in its cloud business, and raised its capital expenditure outlook to meet surging AI-related demand.

Alphabet’s results strengthened expectations for continued investment in AI infrastructure, lifting South Korean semiconductor stocks. Samsung Electronics and SK Hynix rose more than 4% and 6%, respectively, while SK Square gained 3.1%. Automaker Hyundai Motor and battery maker LG Energy Solution also advanced about 3.0% each.

Separately, South Korea’s economy grew 0.6% in the second quarter, outpacing the Bank of Korea’s forecast of 0.2%, as robust semiconductor exports and resilient private consumption underpinned activity. Meanwhile, investors continued to monitor geopolitical risks in the Middle East, where renewed tensions between the US and Iran drove oil prices higher.