Seoul: Seoul stocks closed over 1 percent higher Thursday, driven by better-than-expected earnings results from Nvidia, despite a consecutive rate hike by the Bank of Korea (BOK). The Korean won also gained against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) opened over 2 percent higher and ultimately closed up 104.16 points, or 1.53 percent, at 6,912.37. Investor sentiment remained positive due to the strong second-quarter earnings of the U.S. chip giant, which alleviated concerns about the artificial intelligence boom and ongoing demand for semiconductors.

However, the index saw a reduction in earlier gains following the BOK's decision to raise the country's base rate by a quarter percentage point to 3 percent. Governor Shin Hyun-song characterized the rate hike as a "preemptive, proactive and advanced" measure to address inflation and other financial risks. He also emphasized that the South Korean economy continues to experience solid growth, bolstered by robust semiconductor exports.