MSCI's broadest ​index of Asia-Pacific shares outside Japan, opens new tab jumped 2.3% to a fresh record, led by a 5.1% surge in South Korea's ​Kospi, opens new tab, clearing the 7,000 mark for the first time.

"Markets embraced a sense of calm and stability overnight, ⁠with the risk of escalation in the Middle East conflict viewed as having diminished after U.S. Defence Secretary Pete Hegseth ensured ​the ceasefire was still in place, despite the U.S. and Iran trading blows yesterday," analysts from Westpac wrote in a research note.

"This put ​some wind in the sails for risk sentiment, supporting a rebound in equities across the U.S. and Europe at the same time as crude oil prices partially unwound yesterday’s climb."

Stocks on Wall Street hit fresh records on Tuesday as the S&P 500, opens new tab rose 0.8% and the Nasdaq Composite, opens new tab gained 1%.

"Investors bought ​and continue to add to positioning in the 2026 winners," said Chris Weston, head of research at Pepperstone Group Ltd in Melbourne. "There ​has been some buying in S&P 500 materials stocks, but it’s tech that continues to attract the bulk of flows, notably in Apple and the ‌memory plays."

As ⁠the Seoul market reopened after a holiday, Samsung Electronics, opens new tab jumped 12%, topping a $1 trillion market value, overtaking Berkshire Hathaway, opens new tab and closing in on Walmart, opens new tab.

"Due to the capex spend we are seeing from hyperscalers in the U.S., the earnings growth trajectory for sectors such as semiconductors, tech hardware, industrials and materials in Asia exceeds anything I have seen in a long-time," said Rushil Khanna, head of equity investments for ​Asia at Ostrum, an affiliate ​of Natixis Investment Managers.

"This capex ⁠is leading to material value creation in Asia as the provider of the picks and shovels to the AI ecosystem," he said.

Shares in Advanced Micro Devices, opens new tab jumped 16.5% in extended trading as the company ​forecast second-quarter revenue above Wall Street expectations on Tuesday, helped by keen demand for its dead-centre chips ​as cloud-computing companies ⁠accelerate spending on AI infrastructure.

In the foreign exchange markets, the U.S. dollar index , which measures the greenback's strength against a basket of six currencies, snapped a three-day winning streak, nudging down 0.1% to 98.236.