South Korea's KOSPI on Wednesday fell 1.61 percent and failed to hold above the 5,800 level. The decline appears to reflect persistent uncertainty over Middle East developments, with Israel and Iran showing signs of conflict even after ceasefire talks.

The KOSPI closed down 94.33 points, or 1.61 percent, at 5,778.01. It opened down 45.89 points, or 0.78 percent, at 5,826.45 and extended losses in the afternoon to fall as low as 5,757.49.

By investor category, foreigners were net sellers of 875.3 billion won, dragging the index lower. Individuals and institutions were net buyers of 297.4 billion won and 208.3 billion won, respectively.

Most of the top stocks by market capitalisation weakened.

Samsung Electronics fell 3.09 percent to close at 204,000 won, and SK Hynix slid 3.39 percent to finish at 998,000 won.

Hyundai Motor fell 3.64 percent, Samsung Biologics lost 1.13 percent, Hanwha Aerospace dropped 2.22 percent and Kia declined 5.46 percent.

LG Energy Solution, however, rose 3.69 percent to end higher.

The KOSDAQ closed down 13.85 points, or 1.27 percent, at 1,076.00.

The won-dollar exchange rate closed at 1,482.20 won per dollar, up 1.20 won from the previous session.