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 stocks edged closer to the 7,000 milestone on Thursday, buoyed by Nvidia's robust earnings report. The KOSPI index opened at 6,996.12, marking a 2.76% increase from the prior session. Nvidia's fiscal second-quarter revenue surged to $96.2 billion, representing a staggering 106% growth year-over-year, exceeding Wall Street projections. This positive sentiment fostered expectations of sustained investment in AI infrastructure and semiconductor demand, which propelled chip stocks across the Korean market.
However, the rally faltered around 10 a.m. when the Bank of Korea (BOK) decided to hike its benchmark interest rate from 2.75% to 3%. This decision dampened the momentum, causing the KOSPI to narrow its gains. As the day progressed, the index managed to regain some lost ground but ultimately closed at 6,912.37, reflecting a 1.53% increase.
Despite the slight decline, foreign and institutional investors remained net buyers, accumulating 152.4 billion won and 177.6 billion won, respectively. Conversely, retail investors sold a net 1.91 trillion won. The semiconductor sector, heavily reliant on Nvidia's innovations, also experienced positive gains, with Samsung Electronics leading the charge.
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.
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