A screen at the dealing room of Hana Bank’s headquarters in Seoul shows the benchmark KOSPI and Kosdaq, Friday. Yonhap

Korean stocks traded nearly 13 percent higher late Friday morning as investors scooped up semiconductor shares following Microsoft's strong earnings.

After opening 1.15 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) expanded its gains, adding 717.3 points, or 12.82 percent, to trade at 6,310.86 as of 11:20 a.m.

The surge followed a three-session heavy sell-off due mainly to concerns over artificial intelligence (AI) spending. The KOSPI fell nearly 40 percent this month alone.

Overnight, Wall Street closed higher as Microsoft's stronger-than-expected earnings report eased fears about massive spending on AI infrastructure.