Turkey followed India by tightening policy at a midnight meeting of its central bank, with the massive hike in the overnight lending rate of 425 basis points taking rates all the way to 12%.
"Aggressive Turkish central bank move produces a global 'good', sucking the life out of the dollar against EM Asia," Scotiabank said in a research note.
The won also benefited from stronger-than-expected industrial output growth and a record current account surplus. The won's strength lifted the Taiwan dollar.
Malaysia's ringgit advanced on buying by offshore hedge funds and demand against the Singapore dollar.
Asian shares also rallied after Turkey's move, reflecting a broad rise in risk-appetite which provided some respite for the battered Turkish lira.
Scoatiabank said that most Asian central banks are unlikely to tighten monetary policy, given better economic fundamentals in the region and expectations of a further reduction in the US Federal Reserve's stimulus.
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Malaysia's central bank is expected to keep its interest rate unchanged at 3% later in the day.
Still, emerging Asian currencies face a bumpy road, analysts say.
"While the Turkish central bank's 'no-holds-barred' rate hikes may provide a near term respite for emerging market currencies in the near term, background caution nonetheless will continue to persist," OCBC Bank said in a client note.
"We continue to see key risks to Asian currencies from the depletion of portfolio capital flow interest, dollar dynamics, as well as a potential flare up in EM jitters."
The recent selloff in emerging market assets drove Asian currencies sharply lower as investors fretted over the twin concerns of a cutback in US stimulus and slowing growth in China.
The Fed is expected to announce another $10 billion cut in its monthly bond-purchase programme when it concludes a two-day policy meeting later in the day.
WON
The won rose as offshore funds scrambled to cover short positions and on demand from exporters such as shipbuilders, traders said.
South Korea's industrial output jumped in December and its current account surplus grew to a record last year, suggesting the economy carried strong momentum into 2014 with sufficient buffers to weather the latest global market turmoil.
Some traders added dollar holdings ahead of the result of the Fed's policy meeting later in the day, limiting the won's upside.
"As the Fed is expected to continue to taper, the won will find some resistance at 1,070," said a foreign bank trader in Singapore, referring to the won's value against the dollar.
Domestic importers also purchased the greenback for payments, while some traders suspected that authorities were intervening to keep the won below 1,070.
South Korea's financial markets will be closed on Thursday and Friday to mark the Lunar New Year holidays.
TAIWAN DOLLAR
The Taiwan dollar gained as local interbank speculators bought it on the won's strength.
Trading was subdued with little corporate flows as the island's financial markets will be shut from Thursday to Tuesday for the Lunar New Year holidays.
RINGGIT
The ringgit advanced on the US dollar on demand from leverage funds after Turkey's rate hikes improved risk sentiment.
The Malaysian currency also rose 0.2% to 2.6080 against the Singapore dollar. On Tuesday, the ringgit hit 2.6225 to the neighboring unit, its weakest since July 1998.
"We see scope for ringgit to benefit more from the near-term improvement in EM sentiment following the Central Bank of Turkey's decision to aggressively hike interest rates," ANZ said in a research note.
ANZ recommends buying the ringgit to the Singapore dollar through one-month forward/non-deliverable forward for a short-term tactical trade.
Against the US dollar, however, some real money funds and local traders sold the ringgit around its session high of 3.3160, traders said.
"The question is whether the risk rally can continue," said a senior Malaysian bank trader in Kuala Lumpur.
"I will pick levels possibly next week to short risk positions after the Fed. Turkey just saved themselves for the short term with fundamental problems still there," the trader said.