Overnight, all three major U.S. indices closed lower. The S&P 500 fell 0.63 percent to 7,064.01, while the Nasdaq Composite dropped 0.59 percent to 24,259.96 and the Dow Jones Industrial Average declined 0.59 percent to 49,149.38.
In Seoul, the benchmark KOSPI earlier broke above the 6,400 level to hit a fresh record high, driven by strong gains in chipmakers and growing expectations of a supercycle, as improving export data reinforced confidence in the sector's earnings outlook.
Investor flows showed a clear divergence. Retail investors were heavy buyers with 671.1 billion won ($454.1 million), while foreign investors sold 336.0 billion won and institutions followed with 287.4 billion won, suggesting that the decline was driven by sustained selling from foreign and institutional investors.
But underlying sentiment remained relatively resilient, supported by continued optimism around the semiconductor cycle.
Energy-related shares also provided selective support, as elevated oil prices fueled expectations of a rebound in battery-related industries.
Oil prices, however, edged lower, with both Brent crude and U.S. West Texas Intermediate futures slipping about 0.4 percent, as the extension of the ceasefire eased immediate supply disruption concerns despite lingering geopolitical uncertainty.
However, escalating uncertainty surrounding the Middle East conflict has pushed the market into a more volatile phase, with the benchmark index struggling to establish a clear direction after hitting record highs.
Large-cap stocks were broadly weaker. Samsung Electronics fell 1.3 percent to 216,250 won, while SK hynix declined 2.0 percent to 1,200,000 won. LG Energy Solution slipped 0.3 percent to 476,500 won.
Automakers also traded lower, with Hyundai Motor down 2.8 percent at 531,000 won and Kia falling 1.4 percent to 157,800 won. SK Square dropped 2.9 percent, while Doosan Enerbility declined 2.9 percent.
Gains were limited. Samsung Biologics rose 0.2 percent to 1,591,000 won, while Hanwha Aerospace advanced 1.9 percent to 1,417,000 won.
The tech-heavy KOSDAQ also moved lower, falling 1.5 percent to 1,160.96 as of 10:30 a.m. Retail investors bought 257.0 billion won worth of shares on the KOSDAQ, while foreign and institutional investors sold 51.7 billion won and 166.8 billion won, respectively.
Currency markets showed modest movement. The Korean won traded at 1,477.8 per dollar, up 0.3 percent against the greenback.
Elsewhere in Asia, Japan's Nikkei 225 rose 0.2 percent to 59,423.0, while Hong Kong's Hang Seng Index fell 0.9 percent to 26,251.6. China’s Shanghai Composite Index edged down 0.2 percent to 4,075.9.
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