* Banks account for most of the gains
* Materials rise on higher iron ore, copper prices
* New Zealand treads water
(Updates to close)
June 28 (Reuters) - Australian shares edged higher on Thursday, snapping four straight sessions of fall, on the back of gains in banks, while a recovery in commodity prices spurred demand for materials.
The S&P/ASX 200 index .AXJO closed 0.3 percent, or 19.5 points, higher at 6,215.4, after shedding 1.70 points on Wednesday.
Financials closed higher after a weak start and led the gains on the benchmark index.
Financials rose because the Australian market is largely yield- and dividend-driven, said Greg McKenna, chief market strategist at AxiTrader.
Investment bank Macquarie Group Ltd MQG.AX was among the biggest boosts with a jump of 3.7 percent, while the country's "Big Four" climbed between 0.6 percent and 0.9 percent.
BHP BHP.AX , the world's biggest miner, rose 1.8 percent and dominated the gains on the benchmark, bolstered by a recovery in copper prices and rise in iron ore futures.
Other blue chips in the sector also firmed, with Rio Tinto (LON:RIO) Ltd RIO.AX climbing 1.2 percent, while Newcrest Mining Ltd NCM.AX strengthened 1.9 percent to a more than six-week high, boosted by higher gold prices. GOL/
Shares of oil-focused firms also climbed, helped by overnight gains in Brent prices.
Woodside Petroleum Ltd WPL.AX rose 1.8 percent to a three-year high, while Origin Energy Ltd ORG.AX climbed 1.3 percent.
In New Zealand, the benchmark S&P/NZX 50 index .NZ50 ticked up 2.27 points to 8,998.79.
Utilities led the gains, with Contact Energy Ltd CEN.NZ rising 1.2 percent, while Spark New Zealand Ltd SPK.NZ firmed 0.5 percent.