Australia shares fall as ANZ capital raising sends jitters through sector

* Banks fall after ANZ announces capital raising

* Employment gain not convincing to lift market

* Resources rise on higher iron ore price (Adds analysis, quotes, stocks on the move)

SYDNEY/WELLINGTON, Aug 6 (Reuters) - Australian shares saw their sharpest fall in two weeks on Thursday as investors shrugged off commodities gains and upbeat economic data and sold bank stocks amid fresh concerns about how hard they will be hit by tough new capital rules.

By 0214 GMT, the S&P/ASX 200 index was down 0.7 percent or 39.4 points at 5,634, its biggest drop since July 22.

Australia and New Zealand Banking Group, the country's third-largest lender by market value, said it was raising A$3 billion by selling shares at a 5 percent discount to comply with new rules forcing lenders to have more cash relative to their mortgage books.

Its shares were in a trading halt but the other of the so-called "Big Four" banks fell sharply as investors anticipated they will be required to do similar.

Commonwealth Bank of Australia (Other OTC: CBAUF - news) fell 2.3 percent and Westpac Banking Corp dropped 2.6 percent while National Australia Bank, which already conducted a capital raising, gave up 1.9 percent.

"When ANZ reopens, they'll see pretty harsh selling because they're selling at a discount to the market," said Tristan K'Nell, heading of trading at Quay Equities.

"NAB have already acted, but realistically CBA and Westpac are going to have to do something similar," K'Nell added.

The decline came despite an uptick in Australian employment as investors noted that many of the new jobs were part time and unemployment rose too.

Miners fared better after the iron ore price rose, with BHP Billiton and rival Rio Tinto (LSE: RIO.L - news) up 0.8 percent, while smaller iron ore producer Fortescue Metals Group added 2 percent. Rio Tinto reports interim results later on Thursday.

Energy producers were weaker after declines in the oil price. Woodside Petroleum (Xetra: WOP.DE - news) dipped 1 percent while Origin Energy and Santos (Dusseldorf: STS1.DU - news) both fell about 2 percent.

Payment service provider Ozforex Group jumped 11 percent after Deutsche Bank (Xetra: 514000 - news) revised up its earnings forecasts and raised its price target for the company.

New Zealand's NZX50 share index was 0.3 percent higher at 5,955.41 and a whisker away from Monday's lifetime high.

Contact Energy (NZSE: CEN.NZ - news) gained 2.4 percent to a six-week high as it found its feet after its major shareholder sold out earlier this week.

Energy stocks were also lifted by news that Genesis Energy (Stuttgart: 1G6.SG - news) will end coal-fired generation in 2018, reducing over-capacity in the market.

Genesis gained 1.2 percent and Meridian Energy (Berlin: 15M1.BE - news) was up 1.8 percent.

Outdoor clothing retailer Kathmandu rose 1.8 percent as it rejected a takeover offer from home goods retailer Briscoe as too low. Briscoe rose 1.4 percent.

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(Editing by Kim Coghill)