Seoul stocks close over 1 percent higher on Nvidia earnings, despite BOK rate hike

SEOUL, Aug. 27 (Yonhap) -- Seoul stocks closed over 1 percent higher Thursday, boosted by better-than-expected earnings results from Nvidia, despite a back-to-back rate hike by the Bank of Korea (BOK). The Korean won rose against the U.S. dollar.

After opening over 2 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) closed up 104.16 points, or 1.53 percent, at 6,912.37.

Trade volume was light at 265.5 million shares worth 22.5 trillion won (US$16.3 billion). Losers outnumbered winners 537 to 316.

Retail investors were net sellers, offloading 1.91 trillion won. Foreigners and institutional investors snatched up a combined net 318.2 billion won.

Investor sentiment remained solid as the U.S. chip giant's strong second-quarter earnings eased woes over the artificial intelligence (AI) boom and continued demand for semiconductors.

But the index trimmed earlier gains following the BOK's rate hike decision, which raised the country's base rate by a quarter percentage point to 3 percent.

Gov. Shin Hyun-song described the rate hike as a "preemptive, proactive and advanced" response to bring inflation and other financial risks under control, but said the South Korean economy maintains solid growth driven by strong semiconductor exports.

"The market was a seesaw game between the earnings release from Nvidia and the Bank of Korea's monetary policy board meeting," Lee Kyoung-min, an analyst from Daishin Securities, said.

Market heavyweights closed mixed.

Top-cap Samsung Electronics added 1.72 percent to 266,000 won, while its industry rival SK hynix rose 2.49 percent to 1,730,000 won.

Battery shares gathered ground on energy storage system (ESS) momentum.

LG Energy Solution jumped 5.56 percent to 370,500 won, and POSCO Future M vaulted 9.07 percent to 184,000 won.

Bio shares in contrast, closed lower on profit taking. Celltrion dipped 1.09 percent to 191,300 won, and SK Biopharmaceuticals shed 3.93 percent to 88,000 won.

The Korean won was quoted at 1,380.9 won against the U.S. dollar as of 3:30 p.m., up 3.9 won from the previous stock trading session.