Seoul Stocks Rise for Third Day Following Strong Nvidia Earnings

Seoul stocks closed more than 1 percent higher on Thursday, marking the third consecutive day of gains. The benchmark Korea Composite Stock Price Index (KOSPI) rose 104.16 points, or 1.53 percent, to close at 6,912.37. The increase was driven by better than expected second quarter earnings from Nvidia, which eased investor concerns regarding the artificial intelligence boom and semiconductor demand.

The market gains were partially offset by a decision from the Bank of Korea (BOK) to raise the country's base rate by a quarter percentage point to 3 percent. BOK Governor Shin Hyun-song described the rate hike as a preemptive and proactive response to control inflation and financial risks, while noting that strong semiconductor exports continue to drive solid economic growth. An analyst from Daishin Securities characterized the day as a seesaw game between the Nvidia earnings and the BOK monetary policy meeting.

Market performance was mixed among heavyweights. Samsung Electronics rose 1.72 percent to 266,000 won and SK hynix increased 2.49 percent to 1,730,000 won. Battery shares also gained, with LG Energy Solution rising 5.56 percent and POSCO Future M jumping 9.07 percent. Conversely, bio shares fell due to profit taking, with Celltrion dipping 1.09 percent and SK Biopharmaceuticals dropping 3.93 percent.

Trading volume reached 265.5 million shares worth 22.5 trillion won. Retail investors were net sellers, while foreign and institutional investors were net buyers. The Korean won rose 3.9 won against the U.S. dollar to close at 1,380.9 won. Bond prices closed higher, with the three year Treasury yield falling 6.1 basis points to 3.755 percent.