South Korean stocks climbed nearly 2%, with the Kospi reaching a three-week high, driven by semiconductor gains as concerns over AI investment demand eased.

Samsung Electronics and SK Hynix rallied, while broader markets remained mixed. Foreign investors bought shares, and the South Korean won strengthened. Separately, second-quarter economic growth held steady at 0.6%.

Chipmakers led the Kospi gains, with Samsung Electronics rising 2.59% and SK Hynix climbing 3.98%.

The move extends the Kospi's winning streak to four sessions, according to a report by the Economic Times Markets (source).

The Kospi, South Korea's benchmark stock index, is heavily weighted toward large-cap technology and semiconductor companies such as Samsung Electronics and SK Hynix, which is why their share price movements often have an outsized influence on the overall index. Both companies are among the world's largest manufacturers of memory chips, a segment closely tied to global demand for artificial intelligence hardware and data centers.

The session's rebound follows a period in which questions about the pace of AI-related capital spending had weighed on global semiconductor and tech shares, making sentiment toward memory chipmakers sensitive to any signs that AI infrastructure investment remains on track. The combination of easing demand concerns and the steady 0.6% quarter-on-quarter growth reading offered a supportive backdrop for the day's gains. Coming sessions are likely to be watched for further signals on AI hardware demand, foreign investor flows, and whether broader Kospi constituents join the chipmakers' advance.