South Korean Stocks Surge Following Alphabet AI Growth

South Korean shares surged on Thursday, with the benchmark Korea Composite Stock Price Index gaining between 2.42% and 4%. The rally followed a second-quarter earnings report from Alphabet Inc., which detailed 82% growth in its cloud business and plans for increased capital expenditures to meet artificial intelligence demand. This momentum lifted major semiconductor companies Samsung Electronics and SK hynix, as well as Hyundai Motor.

The regional gains occurred while U.S. indexes closed lower overnight. Investors in the United States remained cautious regarding big tech earnings and worsening instability in the Middle East. The United States government launched its 12th consecutive strike against Iran following attacks on ships in the Strait of Hormuz.

President Donald Trump responded to the maritime attacks by threatening to "bomb and destroy" Iranian infrastructure, specifically targeting power plants and bridges. These military escalations have contributed to rising global oil prices, contrasting with the localized technology-driven growth seen in the Seoul markets.