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South Korean Stocks Surge, Break Three-Day Losing Streak on AI Optimism

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South Korean stocks surged a record 18% at market close on Friday, led by gains made by semiconductor stocks after Microsoft's stronger-than-expected fiscal fourth-quarter earnings eased investor concerns over AI spending.

Microsoft reported revenue of $90 billion, up 18%, while net income jumped 31% to $35.8 billion on a GAAP basis.

The Korea Composite Stock Price Index, or Kospi, increased by 1001.89 points, or 18%, to end at 6,595.45. The Kosdaq also jumped by 74.98 points, or 11.6%, to close at 719.76.

In economic news, South Korea's all-industry production index, which measures output across the mining, manufacturing, services and construction sectors, rose 2.3% in June from a month earlier, according to data released by the Ministry of Data and Statistics on Friday.

The movement compared with a 0.3% decline in May and stood at 120.1 points based on a 2020 benchmark of 100.

On an annual basis, the all-industry production index climbed 2.3%, reversing the 0.4% drop in May.

In corporate news, Pan Ocean (KRX:028670) posted second-quarter net income attributable to shareholders of 137.5 billion won, up 12% from 122.8 billion won a year earlier, according to a Friday filing with the Korea Exchange.

The South Korean shipping and logistics company's sales rose 48% year over year to 1.914 trillion won from 1.294 trillion won.

Shares of Pan Ocean jumped 11% at market close.

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