The Australian share market closed steady after regaining early losses as investors bought into stocks weakened by concerns about European sovereign debt and tensions on the Korean peninsula. The benchmark S&P/ASX200 index lost 4.4 points, or 0.1 per cent, to 4,584.7, after earlier low around 4,551. The broader All Ordinaries index lost 3.7 points, or 0.08 per cent, to 4,673.2 points, well off its low of 4,638. On the ASX24, the December share price index futures contract was 10 points lower at 4,595 points, with 36,113 contracts traded.

The market opened lower on negative sentiment from offshore markets, with the artillery exchange between North Korea and South Korea adding to risk-averse attitudes. As local trading continued most stocks, with the exception of the big miners, rebounded. The best performer of the day was Telstra, adding to Tuesday's gains with a rise of four cents, or 1.46 per cent, to $2.78. That came as the federal government's legislation paving the way for the telco to participate in the NBN won the support of Independent senator Nick Xenophon.

BHP Billiton lost 19 cents to $42.95 and Rio Tinto shed $1.04 to $82.49. Fortescue Metals gained five cents to $6.45. Newcrest Mining added 26 cents to $$39.67 as the gold price rose due to uncertainty in global markets. The spot price of gold in Sydney was $1,375 per ounce, up $15.64 from Tuesday's close of $1,359.36. Westpac was the best of the banks, adding nine cents to $21.40 after opening lower. The other banks also improved through the day but closed lower, with Commonwealth losing three cents at $48.15, ANZ Banking Group dropping six cents to $22.28 and National Australia Bank 11 cents lower at $23.45.

Making news, Virgin Blue said trading conditions were improving and flagged capacity growth in the current year, but cautioned the outlook was volatile. Its shares gained one cent to 44.5 cents, while rival Qantas lost one cent to $2.63. Programmed Maintenance Services reported a $3.07 million first half loss but said demand for its services should pick up next year. Its shares lost 4.5 cents, or 3.5 per cent, to $1.24.

Pike River Coal shares remain suspended at 61 cents as officials confirmed all 29 miners trapped in its mine are dead after a second explosion. New Zealand Oil and Gas, a major Pike River Coal shareholder, was up half a cent to 69.5 cents before it was placed in a trading halt on Wednesday following the news of the fatalities at the Pike River mine. The most traded stock by volume was Telstra, with 100.9 million shares worth $279.4 million changing hands. Preliminary market turnover was 2.64 billion shares worth $6.09 billion, with 460 up, 627 down and 397 unchanged.