The KOSPI is displayed on a screen at Hana Bank’s dealing room in Seoul, Thursday. The KOSPI reclaimed the 7,000 level for the first time in five trading sessions, closing at 7,096.89, up 299.19 points, or 4.40 percent, from the previous session. Yonhap

KOSPI surged back above the 7,000 level after five trading sessions on Thursday as Alphabet’s stronger-than-expected capital spending outlook reignited optimism over the artificial intelligence (AI) boom.

The Kosdaq also jumped sharply, triggering a temporary halt on program buying orders.

The benchmark KOSPI opened 2.44 percent higher at 6,963.35, up 165.65 points from the previous session, and ended at 7,096.89, gaining 299.19 points, or 4.40 percent.

The rally followed Alphabet, Google’s parent company, raising its 2026 capital expenditures (CAPEX) guidance, a move that eased concerns over a slowdown in AI-related investment momentum.

“Alphabet lifted its 2026 CAPEX forecast to $195 billion-$205 billion from $180 billion-$190 billion,” said Kim Joong-han, an analyst at Samsung Securities. “The higher spending guidance showed that concerns over a slowdown in the AI cycle and capital expenditure were overdone.”

He added that enterprise demand momentum is likely to strengthen further in the second half.

Amid renewed AI optimism, shares of Samsung Electronics and SK hynix, the country’s two largest chipmakers, advanced 3.65 percent and 4.86 percent, respectively, tracking gains in global AI-related stocks.

The Kosdaq, meanwhile, opened 1.65 percent higher at 763.51 and extended gains to close at 790.28, up 39.19 points, or 5.22 percent.

The Korea Exchange suspended program buying orders for five minutes at around 2:27 p.m. after Kosdaq 150 futures and the Kosdaq 150 index jumped more than 6 percent and 5 percent, respectively.

In the Seoul foreign exchange market, the won strengthened 13.3 won against the dollar to close onshore trading at 1,466.8 won per dollar.