All articles tagged with #bank of korea
Asia-Pacific markets showed mixed performance as investors reacted to the Bank of Korea's decision to keep interest rates steady and U.S. President Trump's announcement of a 50% tariff on Brazilian imports and copper, with Singapore stocks reaching a new high and U.S. stock indices closing at record levels.
South Korea's central bank unexpectedly cut its benchmark interest rate by 25 basis points, marking the first consecutive rate cuts since 2009, in response to a weaker-than-expected GDP growth and slowing exports. The Bank of Korea aims to mitigate economic downside risks despite concerns over the depreciating won. The decision reflects the bank's focus on supporting growth amid stabilized inflation and external pressures, including potential U.S. tariffs affecting exports.
Hong Kong stocks drop over 2% as Asia markets trade mixed ahead of China data, with Singapore's GDP growing 2.7% in the first quarter and the Bank of Korea leaving interest rates unchanged at 15-year high. The Japanese yen weakens to a 34-year low against the U.S. dollar, while U.S. tech shares lift S&P 500 and Nasdaq Composite into positive territory. Additionally, Goldman Sachs refreshes its top Asian picks for April, and experts share tips on picking cheap stocks for long-term investment.
The Bank of Korea has held its benchmark interest rate steady at 3.5% for the third consecutive time, in line with expectations. Meanwhile, Asia-Pacific markets are mixed, with Japan's Nikkei 225 up 0.22%, South Korea's Kospi up marginally, and Australia's S&P/ASX 200 down 0.71%. Hong Kong's Hang Seng index looks set to breach its two-month low. In the US, the Fed minutes showed "uncertainty" from participants about whether to increase rates for an 11th time at its June meeting. Negotiators for both sides of the debt ceiling talks were expected to meet again on Wednesday morning.
Bank of Korea Governor Rhee Chang-yong says it's too early to start talking about rate cuts, despite market speculation that it could soon begin cutting rates. The South Korean central bank paused its tightening cycle, but Rhee says those expectations are "premature." Inflation reached a 14-month low of 3.7%, but is still above the central bank's target of 2%. Wall Street banks predict South Korea could start a rate-cutting cycle as early as the third quarter. The Bank of Korea governor noted that global inflation levels seem to have peaked despite seeing stickiness in core readings.