Global Market: Kospi gains over 1% as Nvidia outlook lifts chipmakers

South Korean shares rose on Thursday, led by chipmakers after strong demand forecasts from US technology giant Nvidia, while investors awaited the Bank of Korea governor’s news conference following the central bank’s interest-rate decision, according to a report by Reuters.

The benchmark Kospi was up 83 points, or 1.22%, at 6,894.25 as of 0104 GMT. The index had gained as much as 2.8% earlier in the session, reaching its highest intraday level since August 18.

Nvidia forecast a 70% increase in revenue for its next fiscal year on Wednesday, highlighting continued strong demand for artificial intelligence computing. The company also warned that shortages of memory components could constrain the pace of expansion.


The upbeat outlook provided a boost to South Korean chip stocks. Samsung Electronics rose 1.43%, while SK Hynix gained 2.37%. Battery maker LG Energy Solution advanced 3.42%.

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The Bank of Korea raised its benchmark interest rate by 25 basis points to 3.00%, as widely expected, delivering its second consecutive rate increase as inflation remains above target and financial stability risks persist.

The central bank also raised its growth forecast for this year to 3.3%, from 2.6% projected in July. Governor Shin Hyun-song was scheduled to hold a news conference at 0210 GMT, with investors expected to closely assess the outlook for further monetary tightening.

Among other major stocks, POSCO Holdings gained 3.20%, while Samsung BioLogics fell 0.50%. Hyundai Motor and Kia declined 1.96% and 1.52%, respectively.

Of the 905 stocks traded, 352 advanced and 501 declined. Foreign investors were net buyers of 73.3 billion won ($53.21 million) worth of shares.

The South Korean won strengthened 0.63% to 1,377.6 per dollar on the onshore settlement platform, compared with its previous close of 1,386.3.

In fixed-income markets, September futures on three-year Treasury bonds fell 0.11 point to 103.21. The yield on the most liquid three-year Korean Treasury bond rose 3.7 basis points to 3.854%, while the benchmark 10-year yield increased 3.9 basis points to 4.311%.

Nvidia’s strong AI demand outlook and the Bank of Korea’s higher growth forecast supported sentiment toward South Korean equities, although the central bank’s policy guidance remained a key focus for investors.