Nvidia-inspired KOSPI rally subdued after BOK's 2nd straight rate hike
Seoul stocks fell just short of reclaiming the 7,000 mark on Thursday, as Nvidia’s stronger-than-expected earnings fueled an early rally before the Bank of Korea’s (BOK) rate hike tempered gains. The benchmark KOSPI opened at 6,996.12, up 2.76 percent from the previous session, after Nvidia reported fiscal second-quarter revenue of $96.2 billion, up 106 percent from a year earlier and above Wall…
Seoul's stock market initially surged following Nvidia's surprising earnings, but this rally was curtailed by the Bank of Korea's decision to raise interest rates for the second consecutive time. The KOSPI index opened at 6,996.12, marking a 2.76% increase from the prior session, buoyed by the technology giant's strong fiscal second-quarter revenue of $96.2 billion, which represented a 106% year-over-year surge and exceeded Wall Street projections.
This positive sentiment extended to chip stocks throughout the Korean market, reflecting sustained demand for artificial intelligence infrastructure and semiconductors. However, the market's gains were significantly muted after the central bank announced a rate hike from 2.75% to 3%, prompting a sharp decline around 10 a.m. that saw the KOSPI fall to 6,912.37, a 1.53% increase from the previous close.
Despite this setback, foreign and institutional investors were net buyers, contributing 152.4 billion won ($111 million) and 177.6 billion won, respectively, to the market. In contrast, retail investors were net sellers, offloading a net 1.91 trillion won worth of shares. The semiconductor sector also showed resilience, with major players Samsung Electronics among the firms that posted gains.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
