(LEAD) Seoul stocks open sharply higher on robust earnings from Nvidia

SEOUL, August 27 -- The Korean Composite Stock Price Index (KOSPI) experienced a significant surge on Thursday, opening sharply higher by 159.24 points, or 2.34 percent, reaching 6,967.45. This bullish start was largely attributed to Nvidia's market estimate-beating earnings, which provided much-needed relief amid concerns over a potential slowdown in semiconductor demand.

In contrast, Wall Street's major stock indexes closed lower overnight, with the S&P 500 and Nasdaq both experiencing slight declines of 0.02 percent and 0.08 percent, respectively. Despite this, Nvidia's second-quarter earnings, revealed after the market closed, helped alleviate fears of an artificial intelligence (AI) bubble. The company reported that its sales had more than doubled from the previous year, surpassing Wall Street's expectations.

Moreover, Nvidia forecasted a 70 percent growth in its fiscal 2028 income, which also exceeded analyst predictions. Investors are closely monitoring the Bank of Korea's rate decision, which is scheduled to be announced later in the day. Among the top-performing stocks, Samsung Electronics climbed 3.06 percent, SK hynix rose 4.15 percent, LG Energy Solutions increased 3.85 percent, Hanwha Aerospace gained 2.39 percent, and Hyundai Motor decreased 0.25 percent.

The Korean won strengthened against the U.S. dollar, trading at 1,384.8 won, marking a 1.5-won increase from the previous trading session.