The benchmark Kospi index in Seoul jumped 3.85% at the open on Wednesday, marking a sharp turnaround in sentiment for Asian markets after weeks of volatility linked to geopolitical tensions in the Middle East.
The rally was broad-based but particularly strong in the technology sector, where investors engaged in aggressive bargain hunting following recent sell-offs.
The surge reflects growing optimism that the risk of shipping disruption in the Strait of Hormuz is receding.
Markets have been pricing in significant tailwinds from potential de-escalation, with traders responding to signals that a diplomatic resolution could be imminent.
The easing of route exposure concerns has provided a lift not only to equities but also to broader risk appetite across the region.
This move follows reports that a deal regarding the Strait of Hormuz could be struck by midweek, according to earlier coverage.