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Seoul shares ended flat Friday, as investors scooped up defense and shipbuilding stocks, offsetting a decline in major tech shares despite Middle East tensions. The South Korean won fell against the U.S. dollar.

According to Yonhap News Agency, after choppy trading, the benchmark Korea Composite Stock Price Index (KOSPI) edged down 0.18 point to close at 6,475.63. The index had closed at a record high of 6,475.81 a session earlier. The KOSPI has risen 4.58 percent this week.

Trade volume was moderate at 871 million shares worth 29.82 trillion won (US$20.08 billion), with gainers outnumbering decliners 619 to 236. Overnight, the Dow Jones Industrial Average fell 0.36 percent, and the Nasdaq Composite declined 0.89 percent. Foreigners sold a net 1.95 trillion won worth of local stocks, while institutions and individuals bought 807.74 billion won and 1.18 trillion won, respectively.

Investor sentiment remained subdued amid little p rogress in U.S.-Iran talks. "But sentiment was not fully dampened by uncertainties stemming from the Middle East as investors look to solid corporate earnings released or set to be released," Cho Seung-bin, an analyst at Daishin Securities Co., said.

U.S. President Donald Trump said on Thursday (U.S. time) he had ordered the Navy to target vessels laying mines in the Strait of Hormuz, while adding that Iran is seeking a deal and negotiations are under way. Iran has also reportedly reactivated its air defense systems. Still, expectations for a second round of talks underpinned hopes of easing tensions and stabilizing the strait, a key global oil shipping route.

Separately, Trump said Israel and Lebanon would extend their ceasefire by three weeks, helping to temper concerns about a broader regional conflict. In Seoul, tech and auto stocks led the losses. Market bellwether Samsung Electronics fell 2.23 percent to 219,500 won, while chip giant SK hynix declined 0.24 percent to 1,222,000 won.

Top automaker Hyundai Motor dropped 3.57 percent to 513,400 won, and its smaller affiliate Kia Corp. shed 3.16 percent to 153,400 won. Leading refiner SK Innovation fell 0.23 percent to 132,900 won, and S-Oil shed 1.16 percent to 119,400 won. Among gainers, defense giant Hanwha Aerospace Industries rose 2.67 percent to 1,463,000 won, and LIG Defense and Aerospace jumped 2.38 percent to 989,000 won.

The local currency was quoted at 1,484.50 won against the U.S. dollar at 3:30 p.m., down 3.5 won from the previous session. Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 3.8 basis points to 3.496 percent, while the return on the benchmark five-year government bonds rose 3.1 basis points to 3.683 percent.