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South Korean stocks snapped a three-session winning streak on Friday as investors engaged in profit-taking, while the local currency weakened against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 34.13 points, or 0.55 percent, to close at 6,191.92, according to Yonhap News Agency.

The index had risen for three consecutive sessions, closing above the 6,200-point mark Thursday for the first time since the outbreak of the U.S.-Iran conflict on Feb. 28. The all-time closing high stands at 6,307.27, set on Feb. 26.

Coverage Comparison

Reports from Yonhap News Agency, which provided all available coverage, consistently attributed the market decline to profit-taking and investor caution ahead of potential diplomatic developments. Early trading saw the KOSPI open slightly higher but quickly fall into negative territory, with one report noting a drop of 34.82 points within the first 15 minutes.

The local currency was trading at 1,479.95 won per dollar at 11:20 a.m., down 5.85 won from the previous session, and at 1,479.45 won at 9:15 a.m., down 4.85 won.

Key Claims

  • Market decline: The KOSPI fell 34.13 points, or 0.55 percent, to finish at 6,191.92, ending a three-session winning streak. Trading volume was moderate at 680.2 billion shares worth 22.8 trillion won (US$15.4 billion), with gainers beating decliners 463 to 389.
  • Investor activity: Foreigners sold a net 2 trillion won worth of stocks, while institutions bought a net 150.3 billion won and individuals purchased a net 1.4 trillion won.
  • Diplomatic context: U.S. President Donald Trump painted a bright picture for another round of possible peace negotiations with Iran, stating the next meeting could take place over the weekend. He also noted that Israel and Lebanon had agreed to a 10-day ceasefire.
  • Sector performance: Tech and defense shares led the losses. Samsung Electronics fell 0.69 percent to 216,000 won, and SK hynix lost 2.34 percent to 1.1 million won. Defense industry leader Hanwha Aerospace sank 6.32 percent to 1.4 million won, while Korea Aerospace Industries (KAI) dipped 0.79 percent.
  • U.S. markets: Overnight, Wall Street closed higher, with the Dow Jones Industrial Average rising 0.24 percent, the S&P 500 gaining 0.26 percent, and the Nasdaq Composite adding 0.36 percent.

Perspectives

Analysts viewed the decline as a natural pause after recent gains. "The KOSPI took a breather before reclaiming its all-time high amid rising hopes for a second round of peace talks between Washington and Tehran," said Kang Jin-hyuk, an analyst at Shinhan Securities Co.

The market's reaction reflects both optimism about potential diplomatic progress in the Middle East and caution as investors await concrete outcomes. The 10-day ceasefire between Israel and Lebanon, alongside U.S.-Iran signals, were cited as supporting factors for regional stability, though the immediate impact on Seoul shares was muted by profit-taking.

Trading showed a split between foreign and domestic investors, with foreigners offloading shares while local institutions and individuals picked up the slack. The won's decline against the dollar adds to the mixed picture for the South Korean economy.