Seoul shares decline over 1%, led by chipmakers after Nvidia's earnings

South Korean shares retreated more than 1 percent Thursday, led by chipmakers after an underwhelming earnings result by global artificial intelligence chip giant Nvidia. The local currency rose against the US dollar.

The benchmark Korea Composite Stock Price Index slipped 27.55 points, or 1.02 percent, to close at 2,662.28.

Trade volume was moderate at 284.7 million shares worth 11.3 trillion won ($8.47 billion), with losers outnumbering winners 590 to 280.

Institutions and foreign investors sold a net 68.6 billion won worth of shares, while individuals bought a net 62.7 billion won.

Overnight in the United States, the Dow Jones Industrial Average fell 0.39 percent, with the S&P 500 losing 0.6 percent. The tech-heavy Nasdaq composite slipped 1.12 percent as well.

Wall Street lost ground as Nvidia's closely followed second-quarter earnings result failed to impress investors, despite having beaten market expectations.

Despite the market losses, observers advised investors to maintain a level-headed approach in reading market developments.

"What we need to focus on at this point is that although market expectations have risen significantly, the failure to meet these expectations does not indicate any damage to the earnings trend or the AI cycle," Han Ji-young, an analyst at Kiwoom Securities, said.

Kim added, "There is also the possibility that the market sentiment could improve depending on changing interpretations of the current situation among market players."

In Seoul, chip stocks took heavy beatings. Market heavyweight Samsung Electronics fell 3.14 percent to 74,000 won, and chip rival SK hynix plunged 5.35 percent to 169,700 won.

Bio shares also fell after gains in the past few sessions. Samsung Biologics shed 3.53 percent to close at 956,000 won, and Celltrion slipped 1.24 percent to 199,000 won.

In contrast, battery and energy shares advanced. Top battery maker LG Energy Solution surged 6.11 percent to 391,000 won, and leading refiner SK Innovation rose 1.03 percent to 107,900 won.

The local currency was trading at 1,333.2 won against the US dollar, up 5.8 won from the previous session. (Yonhap)