South Korea's benchmark Kospi index surged as much as 6%, extending its two-day rebound to over 9%, as local chip stocks followed their Wall Street peers higher from the overnight session.

Shares of SK Hynix Inc jumped more than 8%, providing a significant boost to the index, with Samsung Electronics Co Ltd and SK Square Co Ltd also among the top contributors to the gains.

An analyst from Kiwoom Securities, Han Jiyoung, noted that while it is still premature to conclude that foreign investors have reversed course to become net buyers, the process of them taking profits and reducing their exposure to South Korean markets may be nearing its end.

Han added that investor attention is likely to shift towards the upcoming earnings report from Alphabet Inc.