South Korea’s surprise rate cut boosts Asian markets

<p>The Bank of Korea’s monetary policy committee reduced its base rate by 25 basis points.</p>

Asian markets bounced back today (March 12th) from earlier losses after a surprise interest rate cut by South Korea’s central bank.

It reduced its base rate by 25 basis points to a record low of 1.75 per cent to counter slowing inflation and a sluggish recovery.

China also reported credit data, with aggregate financing coming in at 1.35 trillion yuan (£144 billion) for February, beating estimates for one trillion yuan, suggesting monetary easing is spurring demand for loans, Bloomberg reports.

Asian markets' bounce comes after several consecutive day of falling stocks as investors worry that the US Federal Reserve will raise interest rates sooner than expected due to the release of strong employment data over the pond.

Japan’s Topix index and the Nikkei 225 gained 1.4 per cent each. Australia’s S&P/ASX 200 Index was up one per cent and New Zealand’s NZX 50 Index rose 0.4 per cent, while the Shanghai Composite gained 1.8 per cent and Hong Kong rose 1.3 per cent. South Korea’s Kospi index lost 0.5 per cent

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