South Korea's KOSPI index rallied sharply on Wednesday, climbing 4.1% in the first 30 minutes of trading to recover the majority of a nearly 10% plunge recorded the previous session.
The benchmark gained more than 330 points in the early move, signaling a rapid stabilization of sentiment after the severe sell-off.
Earlier in the week, Japan's Nikkei 225 climbed more than 5% to a new record high, driven by reports of a peace agreement between the United States and Iran.
The rebound marks a significant shift in market dynamics, as investors appear to be digesting the prior day's volatility and reassessing downside risks.
The swift recovery suggests that the initial panic selling may have been overdone, with buyers stepping in at lower levels to support the index.
This development follows a broader stabilization across Asian equities.
Earlier in the week, Japan's Nikkei 225 climbed more than 5% to a new record high, driven by reports of a peace agreement between the United States and Iran.