Asia Markets
South Korean Shares Close Higher Ahead of US-Iran Ceasefire Talks in Islamabad
South Korean shares closed higher on Friday as Iran and the US gear up for ceasefire talks in Pakistan's Islamabad later in the day after both sides agreed to a two-week truce on Thursday.US Vice President JD Vance is headed to Islamabad, while Tehran's participation in the talks remains uncertain after Israel attacked Beirut earlier this week.The Korea Composite Stock Price Index or Kospi rose 80.86 points, or 1.4%, to end at 5,858.87. The Kosdaq also increased by 17.63 points, or 1.6%, to close at 1,093.63.In economic news, the Bank of Korea's Monetary Policy Board on Friday decided to keep the base rate steady at 2.50% for the intermeeting period, taking into account the uncertainty surrounding the recent developments in the Middle East, which could fan inflation.The central bank's decision was largely expected by all 31 economists polled by Reuters. Most of the 30 economists expect no rate change through this year, with only four forecasting an increase--three to 2.75% and one to 3% by year-end.Annual inflation is now projected to surpass the February forecasts of 2.2% for headline inflation and 2.1% for core inflation. However, uncertainty remains high due to oil prices, exchange rates, policy effects, and cost pass-through levels.In corporate news, HJ Shipbuilding & Construction (KRX:097230) won a redevelopment project in Busan from the Beomcheon 5 District Redevelopment Project Association, according to a Friday filing with the Korea Exchange.The contract is valued at 349.7 billion won.Shares of the shipbuilder rose more than 2% at market close.
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