South Korea’s benchmark Kospi index closed 0.97% higher on Tuesday, marking a strong finish to the session as broad-based strength in the technology sector drove investor sentiment.

The rally was underpinned by sustained optimism regarding diplomatic efforts to ease tensions, with markets closely watching for a possible resumption of talks between the United States and Iran.

Technology stocks led the advance, benefiting from the improved risk appetite.

Investors appear to be pricing in a potential de-escalation of geopolitical risks, which has weighed on regional markets in recent weeks.

The sector’s outperformance highlights the market’s sensitivity to global political developments, particularly those affecting energy supply chains and trade routes.

The Kospi’s gain comes amid a broader backdrop of cautious optimism in Asian markets.