South Korea KOSPI Reclaims 7,000 on Fresh AI Tech Rally

South Korea's KOSPI index broke through the 7,000 point mark on Thursday, climbing 4.17 percent to close at 7,081.21. The surge came as tech shares extended a strong rally fueled by Alphabet's latest earnings report and a welcome rebound in the vital chip sector. Giants Samsung Electronics and SK Hynix led the charge, helping the index recover after an earlier dip.

The positive momentum followed strong numbers from Alphabet, which posted second quarter revenue of $119.8 billion and massive growth in its cloud division. This report reinforced strong global demand for artificial intelligence infrastructure. Even though rising oil prices and geopolitical tensions in the Middle East added some caution to the market, buyers stayed active and pushed prices higher.

Despite the recent bounce, traders are watching closely to see if the index can hold its gains. The market dropped heavily earlier this month, falling into a technical bear market from its June record high. Even so, analysts at Citi are keeping their sights on a lofty 10,000 price target, calling the recent correction a buying opportunity rather than a broken trend. Investors should watch volume levels over the next few sessions to see if this recovery has staying power.