South Korea's central bank held interest rates steady on Thursday, as policymakers steered a cautious path amid concerns about financial stability risks stemming from rising household debt and economic pressure from U.

In a widely expected decision, the Monetary Policy Board of the Bank of Korea (BOK) held its key rate steady at 2.5 percent during a rate-setting meeting in Seoul, reports Yonhap news agency

U.S. stocks rise as investor appetite for AI rekindles. On Wednesday stateside, all three major U.S. benchmarks were up. The Nasdaq Composite advanced 0.94% to close at a new high of 20,611.34. Singapore stocks hit a new high for a fourth consecutive day amid mixed trading in Asia-Pacific markets Thursday.

The U.S. will impose tariffs of 25% on Japan and South Korea beginning on Aug. 1, President Donald Trump announced on Monday in posts on Truth Social.

On Monday, President Donald Trump announced 25% taxes on products from Japan and South Korea, in addition to the threat of higher potential tariffs on goods from those nations if they raise their tariffs on American goods.

The last time President Donald Trump rolled out tariffs this high, financial markets quaked, consumer confidence crashed and his popularity plunged.

The president has already threatened an additional 10% tariff on goods from countries aligning themselves with a bloc of nations that includes China and Russia.

Markets may be underpricing U.S. tariff risks as global trade tensions rise and currencies react. See why investors should prepare for post-July 9 volatility.