South Korean shares declined for a second consecutive day on Tuesday, mirroring losses on Wall Street spurred by concerns over potential tariffs on Canadian and Mexican goods and a downturn in major tech stocks.

The Korea Composite Stock Price Index, or Kospi, was down by 14.98 points, or 0.6%, to close at 2,630.29. The Kosdaq also fell 3.9 points, or 0.5%, to 769.43.

Sentiment remained sour as major US indices closed lower, weighed down by losses among big tech firms, including Microsoft and Nvidia.

At home, the Bank of Korea lowered its base rate by 25 basis points to 2.75% from 3.00%, citing slowing growth, stabilized inflation, and easing household debt.

While acknowledging foreign exchange concerns, the BOK emphasized its priority in mitigating risks of further economic downturn.

A Yonhap Infomax poll of 21 analysts had previously predicted a rate cut to 2.75%.

The central bank also slashed its 2024 gross domestic product forecast to 1.5% from 1.9%, citing weak exports, sluggish consumption, and political uncertainty.

While inflation remained stable, the Bank of Korea cited global risks from US tariff policies and geopolitical tensions, signaling a cautious approach to further rate cuts.

In corporate news, Celltrion (KRX:068270) received European Commission approval for Avtozma (CT-P47), a biosimilar of RoActemra (tocilizumab), covering indications such as rheumatoid arthritis, juvenile idiopathic arthritis, and giant cell arteritis. Shares of the company fell over 2% at market close on Tuesday.