The S&P/ASX200 was up 11.7 points, or 0.15 per cent, to 7,936.9 at midday on Wednesday, while the broader All Ordinaries gained 10.9 points, or 0.13 per cent, to 8137.8.
The benchmark index had surged almost 0.7 per cent in early trading, but quickly gave up most of those gains in a volatile morning of trade.
The choppy start followed a mixed session on Wall Street overnight as investors prepared for new US tariffs, which are expected to include reciprocal and sector-targeting imposts.
The Dow Jones Industrial Index closed 0.03 per cent lower, while the S&P500 and tech-heavy Nasdaq lifted 0.38 per cent and 0.87 per cent respectively.
"Markets are pricing in risks of tariffs with diverging movements across regions and asset classes," Westpac economist Illiana Jain wrote in a research note.
Eight of 11 local sectors were trading higher, with interest-rate sensitive real estate up 1.6 per cent and leading the gains.
Materials stocks, which account for roughly one-fifth of the top-200's combined market cap, were down 1.3 per cent.
Mining giants BHP and Rio Tinto were down 1.7 per cent and 1.9 per cent respectively despite iron ore prices hitting a three-week high overnight.
Financials stocks, which make up about one-third of the local bourse's value, were up 0.4 per cent, tracking with a similar lift in the big four banks.
Energy stocks were down 0.9 per cent after oil prices rolled over last night, amid fears a global trade war could curb demand for crude.
Brent crude futures were trading at $US74.26 a barrel, down roughly 60 US cents, or 0.8 per cent, from the same time on Tuesday.Â
Consumer discretionary stocks were doing well, up 0.9 per cent, after Reserve Bank governor Michele Bullock flagged tariff-induced trade diversion could mean cheaper items reaching Australian shores.
In the midst of ongoing uncertainty, the traditionally defensive utilities sector has continued to improve, up 0.7 per cent at midday on Wednesday and roughly nine per cent higher than the local share market's mid-February peak.
The Australian dollar gained ground against the greenback, and was buying 62.76 US cents, up from 62.56 US cents at 5pm on Tuesday.
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