Seoul: South Korean stocks were trading nearly flat late Wednesday morning while investors kept a close watch on the ongoing rate-setting meeting of the U.S. Federal Reserve. The benchmark Korea Composite Stock Price Index (KOSPI) inched down 0.12 point, or 0.02 percent, to 4,143.43 as of 11:20 a.m.

According to Yonhap News Agency, after opening slightly higher, the KOSPI turned downward as institutional investors sold off shares in finance and heavy industries. Overnight, major stock indexes on Wall Street finished lower, as investors anticipated the Fed to deliver a rate cut but maintain a hawkish tone on future policy directions. Investors are betting the U.S. central bank will make a quarter percentage point reduction, which would bring the U.S. base rate to a range of 3.5 percent to 3.75 percent.

In Seoul, most large cap shares were trading lower. Market top-cap Samsung Electronics fell 0.28 percent, while its chipmaking rival SK hynix added 3.18 percent. Top carmaker Hyundai Motor slid 1.14 percent, while defense giant Hanwha Aerospace declined 2.81 percent. KB Financial Group dipped 0.79 percent.

The Korean won was trading at 1,470.3 won against the U.S. dollar as of 11:20 a.m., up 2 won from the previous session's close.