South Korea's benchmark Kospi index staged a sharp recovery late Monday morning, erasing early session declines as investors pivoted from geopolitical anxiety to risk-on sentiment.
The turnaround was fueled by a broad rally in semiconductor shares, which offset lingering concerns about the stability of US-Iran negotiations aimed at ending the months-long conflict.
The market's reversal highlights the sensitivity of Asian equities to diplomatic developments in the Middle East.
Earlier in the session, the Kospi had opened lower as traders digested fresh uncertainty surrounding the peace talks.
However, reports of progress in negotiations helped calm nerves, allowing the tech-heavy index to find footing.
The semiconductor sector, a critical pillar of the Korean economy, led the charge, suggesting that investors are willing to take on risk if the prospect of a ceasefire appears credible.