News / Korea / yonhap_finance
KOSPI Gains Trimmed as Bank of Korea Hikes Rates; Nvidia Results Provide Support
Electronic Technology · Semiconductors · yonhap_finance · 2026-08-27
000660, 005380, 005930, 009150, 028260, 028300, 032830, 036930, 058470, 086520, 196170, 207940, 247540, 277810, 373220, 402340
The KOSPI index pared early gains following the Bank of Korea's interest rate hike, while strong Nvidia earnings provided a boost to semiconductor stocks.
What Happened
Market Performance: The KOSPI index started the session with strong gains but saw its momentum taper off following the Bank of Korea's decision to raise the base interest rate by 25 basis points. Despite net buying from foreign and institutional investors, concerns over tightening liquidity have capped the index's upside potential.
Semiconductor Strength: Nvidia reported record-breaking second-quarter revenue of $96.22 billion, marking its 13th consecutive quarter of growth. This stellar performance bolstered domestic semiconductor giants like Samsung Electronics and SK hynix, providing a crucial floor for the broader market.
Macroeconomic Factors: The U.S. July PCE price index came in slightly higher than expected, heightening uncertainty regarding the Federal Reserve's future monetary policy. Consequently, U.S. Treasury yields have risen, adding pressure to the domestic market alongside the Bank of Korea's preemptive rate hike.
Sector Divergence: While the electronic and metal sectors led the market, utilities, real estate, and retail sectors faced downward pressure. The KOSDAQ index also showed mixed results, with battery-related stocks like EcoPro showing gains while other sectors struggled to maintain momentum following the rate announcement.