BENGALURU (Aug 27): The South Korean won largely held on to gains on Thursday after the central bank delivered a rate hike as expected and raised this year’s growth outlook, while Asian technology stocks rode high on Nvidia-fuelled enthusiasm.

The won strengthened as much as 0.5% to 1,377.40 per US dollar. The Bank of Korea raised its benchmark interest rate to 3.00% in a second straight increase as inflation stays above target.

The won, helped by the bank’s hawkish stance and strong economic growth backed by exports, has fared better than Asian peers this year.

“We now see BOK raising rates by a further 25 bps in 2026 to 3.25% and remain cautiously optimistic on the KRW given the now likely tighter conditions and a continued AI boom even as sentiment remains fragile,” Maybank analysts said in a note.

The Taiwan dollar, another currency linked to chip exports, strengthened to 31.719 a dollar.

Elsewhere, currencies were weaker as the US dollar strengthened overnight after inflation and other economic indicators raised expectations for a Federal Reserve rate hike, ahead of a Jackson Hole meeting of central bankers later in the day.

The Indonesian rupiah loosened to 17,770 a dollar. The currency, also marred by fiscal and governance woes, and concerns about the central bank’s independence, is Asia’s weakest performing currency this year.

The Philippine peso fell to 61.717 per dollar. Ahead of a rate decision due later in the day, the central bank warned it would be difficult to manage peso depreciation against the dollar and hoped exports would grow.

The Philippine central bank, navigating inflationary pressures, peso depreciation, and subdued growth, is expected to raise its key interest rate for the third straight meeting and deliver another 25 basis points of tightening by year-end, according to a Reuters poll.

South Korean stocks rallied 2% and equities in Taiwan surged 0.9%, with both benchmarks extending gains after Nvidia reported that quarterly revenue more than doubled and forecast third-quarter revenue above Wall Street estimates.

A sigh on relief followed as the AI bellwether’s results showed no signs of slowing demand for chips and revived confidence in the AI trade after bouts of anxiety throughout the year, as showcased by the Kospi benchmark’s massive July drop.

Shares of the world’s dominant memory chipmakers — SK Hynix and Samsung Electronics surged 3.7%  and 2.7% respectively. Top contract chipmaker TSMC rose 0.4% in Taipei.

Equities were mixed in Southeast Asia. Indonesian and Thai stocks climbed 0.4% and 0.5% respectively, while those in the Philippines and Singapore shed 1.9% and 0.7%.

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