Australia shares gain 0.2 percent; miners up

WELLINGTON, Nov 4 - Australian shares pared early gains to be 0.2 percent firmer on Wednesday, with miners lifted by higher metal prices and banks up after Westpac Banking Corp <WBC.AX> said it saw bad debts peaking.

But gains were muted as Australian investors had an eye on a mixed performance from offshore markets, said Don Williams, chief investment officer at Platypus Asset Management.

"The market's in a corrective phase, that's why there's not a lot of conviction," Williams said. "Ultimately we're waiting for the U.S. market to find its feet."

The benchmark S&P/ASX 200 index <.AXJO> rose 7.2 points to 4,538.7 at 0010 GMT. It had fallen 0.2 percent on Tuesday.

New Zealand's benchmark NZX 50 index <.NZ50> was flat at 3,157.1.

Westpac shares jumped as much as 2.6 percent before settling around 0.9 percent higher at A$25.67. Australia's third-largest lender reported a fall in second-half profit but provided the banking industry's most positive outlook yet. [ID:nSYD253066]

Australia & New Zealand Banking Group <ANZ.AX> rose 0.8 percent to A$22.76, Commonwealth Bank of Australia also gained 0.8 percent to A$51.68, while National Australia Bank <NAB.AX> dipped 0.2 percent to A$28.34.

Gold miners Lihir Gold <LGL.AX> and Newcrest Mining <NCM.AX> rose more than 3 percent to A$3.31 and A$34.47 respectively, after gold prices hit a record high above $1,080 an ounce. [GOL/]

STOCKS ON THE MOVE

* Coca-Cola Amatil <CCL.AX> rose 0.8 percent to A$10.36 after it said strong conditions had continued in the third quarter, and it was on track to meet its guidance. [ID:nSYD525984]

2340 GMT

* Shares in materials company Quickstep <QHL.AX> gained as much as 71 percent to A$0.65 after it signed an agreement which should see it manufacture components for top aerospace firms making fighter aircraft, a deal worth A$700 million.

2320 GMT