Seoul shares were trading nearly flat late Wednesday morning, erasing earlier gains.
The benchmark Korea Composite Stock Price Index (KOSPI) had added 0.24 point, or 0.01 percent, to 2,571.33 as of 11:20 a.m.
The index got off to a good start at the opening bell but fell into negative terrain before returning to positive territory.
Overnight, Wall Street closed little changed as investors weighed earnings reports from some large U.S. banks and hawkish comments by Fed officials who favor continued rate hikes to tame inflation.
Investors are awaiting the release of the Federal Reserve's Beige Book on Wednesday (U.S. time) and more comments from Fed officials for insight on the U.S. central bank's monetary tightening.
In Seoul, leading carmaker Hyundai Motor inched up 0.26 percent, and its smaller affiliate Kia rose 1.81 percent. Hyundai Mobis, an auto parts affiliate of Hyundai Motor Group, went up 0.67 percent.
Battery stocks, including those affiliated with steel giant POSCO Holdings, continued to gain ground on rosy growth prospects.
POSCO Holdings advanced 0.48 percent, and POSCO Future M, the steelmaker's chemical components-making unit, spiked 4.58 percent.
Financial stocks also helped support the index, with major banking firm KB Financial adding 2.27 percent and Shinhan Financial climbing 1.56 percent.
Market bellwether Samsung Electronics shed 0.3 percent, while No. 2 chipmaker SK hynix declined 1.03 percent. LG Chem lost 2.3 percent.
The local currency was trading at 1,318.5 won against the U.S. dollar at 11:20 a.m., up 0.1 won from the previous session's close.
Source: Yonhap News Agency