South Korean stocks surged to a 10-month high on Thursday, boosted by technology stocks' gains following US chipmaker Nvidia's stellar first-quarter earnings.

Nvidia posted stronger-than-expected Q1 earnings, with revenue hitting $44.1 billion, up 69% from the year-ago period, fueled by soaring AI infrastructure demand.

The Korea Composite Stock Price Index or Kospi rose by 50.49 points, or 1.89%, to close at 2,720.64. The Kosdaq also increased by 7.5 points, or 1.03%, to close at 736.29.

In economic news, the Monetary Policy Board of the Bank of Korea on Thursday lowered the base rate by 25 basis points to 2.50% from 2.75%, aiming to cushion the economy as 2025 gross domestic product growth is forecast to slow sharply to 0.8% from the earlier projection of 1.5%.

Despite stable inflation at around 2%, the bank cited persistent trade-related uncertainties, weak domestic demand, and a decline in exports, brought upon by US tariffs, as key risks to the country's economy, the South Korean central bank said in a Thursday release.

Looking ahead, the Bank of Korea signaled continued monetary support, adjusting rate policy in response to evolving global and domestic conditions.

In corporate news, Naver's (KRX:035420) cloud service provider, Naver Cloud, signed a contract to establish a strategic joint venture with Saudi Arabia's National Housing Company (NHC), Naver said in a Wednesday press release.

The joint venture NAVER Innovation, to be jointly funded by Naver Cloud and NHC's digital arm, NHC Innovation, under NAVER Arabia, aims to advance smart city development and digital transformation in Saudi Arabia.

NAVER Innovation will develop a map-based super app supporting housing, transport, and urban services, and will expand into digital twin platforms, the release said.

Shares of Naver rose nearly 1% at market close on Thursday.