Asian markets reacted to the Bank of Korea’s (BOK) decision to cut interest rates to 1.25% and Hong Kong’s new trade agreements with Southeast Asia on February 25, 2025. The BOK’s move aims to stimulate economic growth, while Hong Kong’s trade deals are expected to boost regional commerce.

Japan’s Nikkei 225 rose 0.5%, South Korea’s KOSPI fell 0.3%, and Hong Kong’s Hang Seng Index gained 0.8%. Analysts noted that while the developments are positive, global economic uncertainties remain a concern.

“The Bank of Korea’s rate cut and Hong Kong’s trade deals are encouraging, but risks remain,” said market analyst David Lee.

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