Asian equity markets surged on Wednesday, driven by a softer-than-expected US inflation print that has significantly reduced fears of an imminent interest rate hike by the Federal Reserve.

The data release triggered a broad-based risk-on rally across the region, with technology stocks leading the recovery after recent selling pressure.

The small-cap Kosdaq index also climbed 4%, while Japan's Nikkei joined the broad-based rally.

South Korea's Kospi index was the standout performer, opening 6.3% higher to mark a dramatic reversal in sentiment for Asian equities.

The small-cap Kosdaq index also climbed 4%, while Japan's Nikkei joined the broad-based rally.

The sharp move reflects a rapid recalibration of expectations for Federal Reserve policy, as investors digest the cooling inflation data.

The rally underscores the sensitivity of Asian markets to US macroeconomic signals.