* Materials and energy stocks up on higher commodity, oil prices
* But banks and industrials drop, blocking benchmark gains
* NZ index lifted by consumer staples
By Aditya Soni
June 27 (Reuters) - Australian shares barely moved on Wednesday as gains in energy and materials stocks were offset by a weakness in banks and industrials.
The S&P/ASX 200 index .AXJO ticked down 1.30 points to 6,196.30 at 0308 GMT. The benchmark fell 0.2 percent on Tuesday.
Materials stocks, especially miners, had the biggest gains, underpinned by improving copper and iron ore prices.
Commodities prices have been hit by trade tensions as investors grow increasingly nervous about the potentially damaging impact on economic growth.
BHP BHP.AX rose 1.7 percent, the benchmark's biggest boost, while its spin-off South32 Ltd S32.AX climbed 1.3 percent.
Energy stocks .AXEJ rose 1.2 percent to a more than three-year high as crude oil prices advanced.
Woodside Petroleum Ltd WPL.AX climbed 1.5 percent, pushing the benchmark up, while Oil Search Ltd OSH.AX strengthened 2.2 percent to its highest since November 2014.
Chief Executive Peter Coleman said on Tuesday Woodside will soon decide whether to keep investing in Sempra Energy (NYSE:SRE)'s SRE.N Port Arthur liquefied natural gas (LNG) export project in Texas. said the project's ability to provide Woodside with an adequate return is "very challenged".
Higher oil prices put pressure on shares of Qantas Airways Ltd QAN.AX , which dropped 2.1 percent to near a four-week low.
Other industrial sector stocks also declined. Rail operator Aurizon Holdings AZJ.AX declined 4.2 percent to a near two-week low.
Aurizon said its fiscal-year 2019 will be challenged due to factors including cessation of Cliffs iron ore mine operations and cessation of the Mt Gibson iron ore contract with a combined earnings before interest and tax impact of about A$50 million ($36.84 million).
Financials .AXFJ also declined, sliding 0. 2 percent after rising for seven out of the previous eight sessions.
National Australia Bank Ltd NAB.AX dipped 0.6 percent, while Westpac Banking Corp WBC.AX dropped 0.5 percent to its lowest since June 20.
In New Zealand, the benchmark S&P/NZX 50 index .NZ50 rose 0.4 percent or 31.13 points to 9,020.93.
Consumer staples led gainers after losing 2.6 percent in the past three days.
Dairy firm a2 Milk Company Ltd ATM.NZ rose 1.6 percent and Synlait Milk Ltd SML.NZ firmed 3.7 percent to a record high.
Air New Zealand Ltd AIR.NZ rose 1.8 percent. On Wednesday, it said a penalty of A$15 million imposed by the Australian Federal Court on cartel charges will not impact its 2018 earnings before taxation guidance. ($1 = 1.3574 Australian dollars)