Seoul: South Korean stocks traded lower late Wednesday morning following a record-breaking rally as uncertainty over Middle East peace talks persists. Opening 0.01 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended losses, dropping 18.44 points, or 0.29 percent, to 6,370.03 as of 11:20 a.m.

According to Yonhap News Agency, the index reached an all-time high of 6,388.47 on Tuesday on hopes for progress in the U.S.-Iran peace talks and solid corporate earnings. Overnight, U.S. President Donald Trump announced an extension of the ceasefire with Iran at Pakistan's request, hours before its deadline, until a "unified proposal" from Tehran. This announcement followed Vice President JD Vance's decision to put his trip to Pakistan on hold, with Iran yet to formally announce its participation in the talks in Islamabad.

Semiconductor and bank shares traded in negative territory. Market bellwether Samsung Electronics fell 0.68 percent, and its chipmaking rival SK hynix declined 0.98 percent. Major banking groups KB Financial Group and Hana Financial Group lost 2.49 percent and 3.09 percent, respectively. Energy firm Doosan Enerbility dropped 1.86 percent, and steel giant POSCO Holdings decreased 1.42 percent.

However, defense companies showed strength with industry leader Hanwha Aerospace rising 1.51 percent and LIG D and A soaring 10.89 percent. Meanwhile, the Korean won was quoted at 1,478.35 won against the U.S. dollar, down 10.05 won from the previous session.