Asian markets showed mixed reactions on February 25, 2025, as investors digested the Bank of Korea’s (BOK) decision to cut interest rates and developments in Hong Kong’s trade policies. The BOK lowered its benchmark rate to 1.25%, the lowest since August 2022, to stimulate economic growth amid slowing domestic demand.

Meanwhile, Hong Kong announced new trade agreements with Southeast Asian nations, boosting investor confidence in the region’s economic prospects. However, concerns over rising geopolitical tensions and global economic uncertainty kept gains in check.

Japan’s Nikkei 225 rose 0.5%, while South Korea’s KOSPI fell 0.3%. Hong Kong’s Hang Seng Index gained 0.8%, driven by optimism over the new trade deals.

“Investors are cautiously optimistic, but global uncertainties remain a key concern,” said market analyst Sarah Lee.