Korean stocks opened higher Thursday, led by a sustained tech rally, as the latest earnings results from Alphabet reaffirmed demand for artificial intelligence (AI). The benchmark Korea Composite Stock Price Index (KOSPI) was up 173.92 points, or 2.56 percent, to 6,971.62, in the first 1 minutes of trading. Overnight, U.S. stocks closed lower as investors remained cautious ahead of earnings releases from big tech companies and escalating tensions in the Middle East. Google's parent Alphabet reported better-than-expected revenue for the second quarter Wednesday (U.S. time), driven by growth of 82 percent in its cloud business. But the company lifted its forecast for capital expenditures to address booming AI demand. The United States launched the 12th consecutive strike against Iran, with President Donald Trump threatening to "bomb and destroy" an Iranian bridge or power plant each time Tehran strikes ships in the Strait of Hormuz. The crucial waterway remains open, but due to weeks of back-and-forth attacks, traffic through the strait has slowed again, pushing up global oil prices.
Alphabet’s stock sinks after it bumps up AI infrastructure spending yet again