Seoul: South Korean stocks ended a three-session winning streak Friday on profit-hunting as investors sat on the sidelines amid diplomatic moves for a possible second round of U.S.-Iran peace talks. The local currency fell against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) dropped 34.13 points, or 0.55 percent, to finish at 6,191.92. 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 February 28. The KOSPI's all-time closing high stands at 6,307.27, set on February 26.

Trading volume was moderate at 680.2 billion shares worth 22.8 trillion won (US$15.4 billion), with gainers outnumbering decliners 463 to 389. Foreign investors offloaded a net 2 trillion won worth of stocks, while institutions picked up a net 150.3 billion won and individuals bought a net 1.4 trillion won.

U.S. President Donald Trump expressed optimism over another round of potential peace negotiations with Iran over the weekend, while Israel and Lebanon announced a 10-day ceasefire. "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.

Most market heavyweights ended in negative territory. Tech giant Samsung Electronics dropped 0.69 percent to 216,000 won, and its chipmaking counterpart SK hynix fell 2.34 percent to 1.1 million won. Defense shares were among the largest losers, with Hanwha Aerospace falling 6.32 percent to 1.4 million won and Korea Aerospace Industries (KAI) decreasing 0.79 percent to 188,400 won.

Energy firm Doosan Enerbility declined 2.08 percent to 108,500 won, while Samsung Bioepis Holdings, a biosimilar manufacturing unit under Samsung Group, decreased 2.96 percent to 591,000 won. Internet giant Naver dropped 0.96 percent to 216,500 won, and gamemaker NC reduced 1.5 percent to 262,500 won.

In contrast, top carmaker Hyundai Motor increased 0.75 percent to 538,000 won, and leading shipyard HD Hyundai Heavy Industries gained 4.15 percent to 514,000 won. The local currency was quoted at 1,483.5 won against the greenback as of 3:30 p.m., down 8.9 won from the previous session.