South Korean shares end over 1% higher on chip boost; cenbank raises rates

SAMSUNG BIOLOGICS

27/08/2026 07:50

KOSPI rises, foreigners net buyers
Korean won strengthens against dollar
South Korea benchmark bond yield falls
For the midday report, please click nL1N44O00Q
SEOUL, Aug 27 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares rose more than 1% on Thursday, as chipmakers jumped on upbeat demand forecasts by U.S. peer Nvidia, while the country's central bank raised interest rates with a sharp upgrade in economic growth projections. 
** The benchmark KOSPI .KS11 closed up 104.16 points, or 1.53%, at 6,912.37, extending gains for a third straight session. 
** Nvidia NVDA.O on Wednesday forecast a 70% jump in revenue next fiscal year, underscoring unabated demand for AI computing, while warning that shortages of memory components would continue to curb how quickly it can expand.
** "It strengthened investor sentiment around the chip sector by reaffirming strong AI investment and growth potential," said Lee Kyoung-min, an analyst at Daishin Securities. 
** "However, caution was also sparked by the Bank of Korea's interest rate hike," Lee said.     
** The Bank of Korea raised its benchmark interest rate by a quarter percentage point, delivering a second straight increase as inflation stays above target and financial stability risks persist.    
** It also revised up this year's growth estimate to 3.3% from the 2.6% projected in July.     
** Among index heavyweights, chipmaker Samsung Electronics 005930.KS rose 1.72%, while peer SK Hynix 000660.KS gained 2.49%. Battery maker LG Energy Solution 373220.KS climbed 5.56%.
** Hyundai Motor 005380.KS and sister automaker Kia Corp 000270.KS were down 2.45% and 4.03%, respectively. Steelmaker POSCO Holdings 005490.KS added 3.51%, while drugmaker Samsung BioLogics 207940.KS fell 0.31%.
** Of the total 906 traded issues, 317 shares advanced, while 539 declined.
** Foreigners were net buyers of shares worth 142.2 billion won ($102.97 million).
** The won was quoted at 1,380.9 per dollar on the onshore settlement platform KRW=KFTC, 0.39% higher than its previous close at 1,386.3.
** The most liquid three-year Korean treasury bond yield KR3YT=RR fell by 4.4 basis points to 3.773%, while the benchmark 10-year yield KR10YT=RR fell by 0.8 basis points to 4.264%.

($1 = 1,381.0000 won)

 (Reporting by Jihoon Lee; Editing by Devika Syamnath)
 ((jihoon.lee@thomsonreuters.com;))