South Korea's Kospi index opened 6.3% higher on Tuesday, marking 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 advance follows the release of softer-than-expected US inflation data, which has significantly strengthened market expectations for imminent interest rate cuts by the Federal Reserve.
The repricing of rate expectations has provided a powerful tailwind for risk assets across the region.
Investors are interpreting the cooling inflation figures as a signal that the Federal Reserve may pivot to a more accommodative stance sooner than previously anticipated.
This shift in policy outlook has alleviated concerns about prolonged high borrowing costs, which had weighed on equity valuations in recent months.