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 in the Middle East, which has helped reduce risk aversion across Asian markets.

The technology sector led the advance, with gains spreading across major chipmakers and hardware manufacturers.

Investors appear to be rotating into growth-sensitive names as geopolitical headwinds show signs of abating.

The move reflects a broader shift in market psychology, where the focus is shifting from immediate supply-chain disruption risks to longer-term earnings potential.

This session's performance builds on recent positive momentum in Seoul, where the index has been supported by improving global trade conditions and stabilizing energy prices.