Emerging-market stocks surged Monday, propelled by artificial intelligence trading strategies as investors sidelined concerns about stalled US-Iran peace negotiations. The benchmark gauge for developing nations' equities climbed 1.4%, led by South Korean tech giants SK Hynix, Samsung Electronics, and MediaTek, positioning for an all-time closing high.

South Korea's equity index experienced an exceptional 5% rally, reaching record territory as investors aggressively piled into semiconductor heavyweights. The buying spree reflected growing anxiety about potential memory chip shortages, driving demand for companies positioned in the AI supply chain despite geopolitical tensions in the Middle East.

The performance underscores how technology investments continue to dominate emerging markets, with semiconductor stocks outperforming broader indices. South Korea's tech sector appears particularly favored by investors seeking exposure to both AI growth and potential chip supply constraints, creating a unique convergence of market dynamics in the developing world.