The benchmark index inched 0.02% higher to close at 7,415.4 points.
China Evergrande Group said its $2.6 billion stake sale to lesser rival Hopson Development Holdings had fallen through, further raising fears about offshore bond defaults from China's No. 2 property developer.
The metals and mining sector, which relies considerably on exports to China, took the biggest hit on Evergrande news, falling 0.25% despite strong iron ore and metal prices.
The country's three biggest miners BHP, Rio Tinto and Fortescue all ended the session between 0.2% and 1.3% lower.
Financials, however, remained strong and added 0.28% despite heavyweights Commonwealth Bank of Australia and Australia and New Zealand Bank ending 0.1% and 0.5% lower, respectively.
The other two of the so-called "Big Four", National Australia Bank and Westpac, added 0.2% and 0.6%, respectively.
Wealth manager Perpetual Ltd was the top gainer on the sub-index and the benchmark, rising 7.8% after reporting a jump in its assets under management.
The benchmark was also helped by engineering contractor CIMIC Group, which ended 5.9% higher to become the second-biggest gainer on the main index after posting a rise in revenue and providing a positive outlook.
Tech stocks continued their rally for a third straight day, rising 0.56% to hit a three-week high as they tracked an earnings-fuelled rally on Wall Street.
The top gainers on the index were Nearmap Ltd, which rose 2.8%, followed by Altium and Xero, which were up about 2.7% and 2.6%, respectively.
Melbourne is preparing to come out of its lockdown on Thursday night after Victoria state hit a key vaccination target, with pubs, restaurants and cafes racing to reopen their doors to fully vaccinated customers.
In New Zealand, the benchmark S&P/NZX 50 index reversed early losses to end 0.09% higher at 13,125.98. - Reuters