Asian Markets Mostly Lower; Bank of Korea Holds Rates Steady
May 28, 2026
Most Asian stock markets ended lower in today’s trading session amid concerns over inflation and global economic uncertainty. Hong Kong’s Hang Seng Index fell nearly 1.3%, while Singapore’s Straits Times Index declined 0.8%. South Korea’s Kospi index slipped over half a per cent, and Japan’s Nikkei 225 dropped by a similar margin. However, China’s Shanghai Composite Index bucked the trend, rising more than 0.1%.
Meanwhile, the Bank of Korea kept its benchmark interest rate unchanged at 2.5%. Five of the seven members of the central bank’s Monetary Policy Board voted in favour of maintaining the current rate, while two members supported a rate hike.
The central bank also revised upward its economic projections for the year. Inflation is now expected to reach 2.7%, compared with the earlier estimate of 2.2%, reflecting the impact of rising oil prices linked to tensions in West Asia. The growth forecast was also raised to 2.6%, significantly higher than the previous projection of 2%.
