By Cecile Lefort and Rebecca Howard
SYDNEY/WELLINGTON, Dec 9 (Reuters) - Australian shares erased early losses on Wednesday after energy and mining stocks recovered lost ground, though investors remained wary of volatility in the commodity world.
After trading 0.8 percent lower, the S&P/ASX 200 index .AXJO pared losses to be down 0.2 percent at 5,095 at 0211 GMT. The benchmark is down nearly 1 percent this week.
Dealers said bargain hunters helped a rebound in the energy sector, with oil and gas firm Santos STO.AX up 3.7 percent after touching a 15-year trough on Tuesday. Gas company Karoon KAR.AX was another winner, up 4 percent.
But investors were selective, opting to sell Origin Energy, down 3 percent, and Whitehaven Coal, off 1.2 percent.
Mining giant BHP Billiton (L:BLT) BHP.AX rose 1.1 percent after its share price broke key support below A$17 and opened the door to bargain hunters.
Financials were mixed, with index heavy weight Commonwealth Bank of Australia CBA.AX up 0.6 percent while peers National Australia Bank NAB.AX and ANZ Bank ANZ.AX were both down 0.8 percent. Westpac Bank WBC.AX eased 0.2 percent.
Services company Spotless Group SPO.AX rose 3 percent in a relief rally after keeping its dividend policy in place.
The firm issued a profit warning earlier this month.
New Zealand's benchmark NZX 50 index rose 0.2 percent or 13.09 points to 6,048.09 on Wednesday.
The biggest gainers were Xero XRO.NZ , which added 3.9 percent and Steel & Tube STU.NZ , which was trading 0.9 percent higher.
The biggest losers included A2 Milk, down 0.9 percent as sentiment appeared hurt by the overnight tumble in commodities. Domestic investors will be waiting for any direction from Thursday's central bank monetary policy statement.
(Editing by Richard Borsuk)