Asian equity markets opened sharply higher on Wednesday, driven by a surprise slowdown in US inflation that has recalibrated expectations for Federal Reserve policy.
The chipmaker-heavy Kospi index in South Korea surged 6% in early trade, leading a broad regional rally that also lifted Japan's Nikkei by 0.4% and the MSCI Asia-Pacific ex-Japan index by 1.7%.
The repricing reflects a shift in investor sentiment away from the geopolitical uncertainties that have weighed on the region in recent weeks.
While concerns over the fragile US-Iran ceasefire and shipping disruptions in the Gulf have persisted, the macroeconomic signal from Washington provided a more immediate catalyst for risk-on positioning.
The softer inflation print suggests the Fed may have more flexibility to ease policy, a development that typically supports equity valuations in growth-sensitive markets like Asia.
This move extends the stabilization trend seen earlier in the month, when Asian markets rebounded from a tech-led rout.