Seoul: South 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) gained 207.25 points, or 3.05 percent, reaching 7,004.95 by 9:35 a.m.

According to Yonhap News Agency, 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 company, Alphabet, reported better-than-expected revenue for the second quarter, driven by an impressive 82 percent growth in its cloud business. However, Alphabet also announced an increase in its forecast for capital expenditures to meet the soaring demand for AI.

The geopolitical scene remains tense as the United States launched its 12th consecutive strike against Iran. President Donald Trump threatened to "bomb and destroy" an Iranian bridge or power plant each time Tehran strikes ships in the Strait of Hormuz. Although the crucial waterway remains open, the repeated skirmishes have slowed traffic through the strait, consequently pushing up global oil prices.

Most market heavyweights in South Korea showed positive movement. Top-cap Samsung Electronics advanced 3.17 percent, while industry rival SK hynix saw a 4.21 percent increase. Carmaker Hyundai Motor rose by 2.63 percent, major financial firm KB Financial inched up 1.37 percent, and battery maker LG Energy Solutions jumped 3.12 percent.

The Korean won was quoted at 1,473.3 won against the U.S. dollar as of 9:35 a.m., marking an increase of 4.2 won from the previous session.