Australia shares bounce on easing trade war worries; NZ rises too

* Aussie shares erase previous day's losses

* Materials, industrials lead gains on ASX

* Consumer staples, utilities boost NZ shares(Updates to close)

March 27 (Reuters) - Australian shares climbed on Tuesday ona surge in base metal and oil prices, as trade war fears easedon reports and indications the United States and China arewilling to renegotiate tariffs and trade imbalances.

The S&P/ASX 200 index was up 0.7 percent, or 41.8points, to 5,832.3 at the close of trade.

On Friday, fears of a trade war made the benchmark slide 2percent, and it shed another 0.5 percent on Monday.

On Tuesday, worries shrank following Chinese Premier LiKeqiang's pledge to maintain trade negotiations and ease accessto China for American businesses.

Chinese steel futures rose on Tuesday from near nine-monthlows, while base metals prices climbed across the board, liftedby the hopes a trade war between top metals consumer China andthe United States may be avoided.

Oil prices also edged higher on Tuesday, pushed up byconcerns that tensions in the Middle East could lead to supplydisruptions.

Leading the Australian index's gains were materials andindustrials.

Material stocks gained 1.3 percent, with indexheavyweights BHP Billiton and Rio Tinto rising1.4 percent and 1.2 percent, respectively.

Toll roads networks developer Transurban Groupadvanced 2 percent and Sydney Airport Holdings added2.2 percent.

In New Zealand, the benchmark S&P/NZX 50 index rose0.9 percent, or 75.71 points, to 8,508.12.

Healthcare stocks contributed to the day's gains, with CSLLtd up 1.3 percent.

Consumer staples and utility stocks led the gains, with a2Milk Company Ltd jumping more than 3 percent andContact Energy Ltd up 2.5 percent.

The main index's biggest gainer was Synlait Milk Ltd. up 6.9 percent.(Reporting by Christina Martin in Bengaluru; Editing by RichardBorsuk)