Australian shares barely up in 2014, New Zealand index +17.5 pct

(Adds analysis, quotes, stocks on the move)

By Cecile Lefort and Naomi Tajitsu

SYDNEY/WELLINGTON, Dec (Shanghai: 600875.SS - news) 31 (Reuters) - Australian shares looked set to end 2014 with a scant gain well below the past two years' robust advances, and weak commodity prices could impact how the market performs in 2015.

This year's gain was likely to be around 1 percent, compared with 15 percent in both 2012 and 2013.

"The big drag on the market has been a big fall in commodity prices," said Michael McCarthy, chief market strategist at CMC (Shanghai: 600327.SS - news) Markets, noting large performance differences between sectors.

"Energy and materials, which account for up to one-third of the index, was down 12-13 percent this year, whereas in property and healthcare, we've seen 20 percent-plus rises," he said.

The S&P/ASX 200 index drifted around its previous close, with investors focused on New Year celebrations. At 0045 GMT the index was up 3.3 points, or 0.1 percent, at 5419.9.

The market will close at 2:10 p.m. (0310 GMT) for New Year's Eve (Shenzhen: 300014.SZ - news) , two hours earlier than normal.

Miners took heart from a bounce in iron ore prices with Fortescue Metals Group and Rio Tinto (Xetra: 855018 - news) both up almost 2 percent. The energy sector followed suit with Santos and Woodside up 0.9 percent, while Origin Energy leapt 1.5 percent.

The "big four" banks - Commonwealth Bank of Australia (Other OTC: CBAUF - news) , Westpac Banking Corp, ANZ Banking Group and National Australia Bank - all rose modestly.

The property sector index was among the biggest losers, down around 1 percent.

The only major data due out in Asia is the final measure of December Chinese manufacturing activity from HSBC.

New Zealand's benchmark NZX50 share index ended a shortened trading session 8.9 points or 0.2 percent lower at 5,568.28. The slip from Tuesday's record closing high of 5,577.20 stemmed from profit-taking on recent blue-chip gainers.

The index gained 17.5 percent in 2014, outperforming Australian shares and many global indices, thanks to a handful of initial public offerings and a buoyant economy.

Wednesday's losses were led by Air New Zealand, which slid 3.14 percent to NZ$2.47, easing from a 7 1/2-year high of NZ$2.64 hit a week ago. The national air carrier soared 58 percent this year, as a booming tourism industry cranked up annual profit.

Auckland Airport eased 1.6 percent to NZ$4.23, pulling back from a record high of NZ$4.44 hit on Monday.

New Zealand Oil and Gas slid 1.6 percent to NZ$0.63 as the energy explorer was stung by a fall in world oil prices to a 5 1/2-year low on Tuesday.

Retirement village operator Summerset slipped 2.1 percent to NZ$2.78, while rest home operator Ryman Healthcare eased 1.0 percent to NZ$8.52.

Both companies dipped after infrastructure investor Infratil this week said it would team up with the state-run pension fund to acquire an Australian retirement village operator RetireAustralia, enabling investors another way to gain exposure to the fast-growing sector.

For its part, Infratil was flat at NZ$3.00, hovering near a lifetime high of NZ$3.08 following Monday's announcement.

New Zealand markets will be closed on Thursday and Friday. (Editing by Richard Borsuk)