South Korea's benchmark Kospi index closed sharply higher on Tuesday, rising more than 3% to snap a two-day losing streak.

The rally was driven by a broad-based rebound in semiconductor stocks, as investors moved to buy the dip after recent selling pressure.

The sharp reversal highlights the continued sensitivity of Asian equity markets to the semiconductor cycle.

With chip names leading the recovery, the Kospi's gain reflects a shift in sentiment from risk-off to bargain hunting, particularly in the technology sector.

The move suggests that despite recent volatility, underlying demand for semiconductor exposure remains intact among regional investors.

This development follows a period of mixed performance for Asian equities, where semiconductor stocks have been a key driver of index movements.