With the market stabilizing, the South Korean Kospi index rebounded from a significant sell-off.

The South Korean Kospi index rose 4.1% at one point, rebounding from Monday's slump, driven by technology stocks. Precious metals also rebounded in early trading. Overnight gains in the US stock market, strong manufacturing data boosted market sentiment, and concerns about AI spending eased. Samsung Electronics and SK Hynix were the biggest contributors to the rise in the South Korean Kospi index on Tuesday. 18 out of 19 sector indices rose, with the electrical and electronics sector leading the gains, surging up to 6%. Retail investors were net buyers of Kospi components, while local and foreign funds were net sellers. The small-cap Kosdaq index rose 3.4% at one point.