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South Korean Shares Close Over 1% as Nvidia Earnings Lift Sentiment Despite BOK's Rate Hike

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South Korean shares closed over 1% higher on Thursday, lifted by stronger‑than‑expected Q2 earnings from U.S. tech giant Nvidia, even as the Bank of Korea raised interest rates for a second straight time.

The Korea Composite Stock Price Index, or Kospi, increased by 104.16 points, or 1.53%, to close at 6,912.37. The Kosdaq also rose by 10.78 points, or 1.3%, to close at 837.65.

Nvidia reported Q2 revenue of $96.2 billion, up 18% from the previous quarter and 106% from a year earlier, while non-GAAP diluted earnings per share came in at $2.22, up 120% from $1.01 in the year-ago period.

In economic news, the Bank of Korea raised its benchmark interest rate by 25 basis points to 3% on Thursday, broadly in line with market expectations.

The Monetary Policy Board decided to lift the base interest rate from its previous level of 2.75% as inflation is projected to exceed its target level "for a considerable period."

The move follows the BOK's rate hike in July, which marked its first increase in over three years.

In corporate news, Samsung Electronics (KRX:005930) said it will look into all potential countermeasures, including an appeal, to a U.K. High Court's order of an $11.6 million payment in damages to Swatch Group, The Korea Times reported Thursday, citing a statement.

The ruling stemmed from a damages suit over Samsung hosting smartwatch face designs copying Swatch brands on its Galaxy app store, the report said.

Swatch had originally sought $170 million in damages, while Samsung said it earned only $300 from hosting the designs, the report added.

Shares of the chipmaker added nearly 2% at market close.

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