Australia shares edge down as miners pressured by weak iron ore

* Shares (Berlin: DI6.BE - news) listless after a volatile week

* Bargain buying in energy stocks, miners weak

* 108 shares up, 79 down, 11 unchanged (Adds analysis, quotes, stocks on the move)

By Swati Pandey and Gyles Beckford

SYDNEY/WELLINGTON, Dec (Shanghai: 600875.SS - news) 12 (Reuters) - Australian shares were down on Friday as miners were dealt another blow with iron ore falling to its weakest level in more than five years, overshadowing renewed optimism about the U.S. economy.

The S&P/ASX 200 index was down 0.17 percent, or 8.87 points, at 5,222.17 points by 0058 GMT. The benchmark ended down 0.53 percent on Thursday, falling for a third consecutive session.

"There were some bargain hunters specially in energy, which is the best performing sector today. But overall, looks like it's going to be a tepid finish to what has been a very volatile week," said Ben Le Brun, market analyst at OptionsXpress.

Senex, Paladin Energy (Other OTC: PALAF - news) and Caltex Australia (Other OTC: CTXAY - news) , were up 3 to 10.6 percent and were among the best performers on the index - the stocks suffered steep falls in recent sessions on plunging in oil prices.

Global miners BHP Billiton (NYSE: BBL - news) and Rio Tinto (Xetra: 855018 - news) were down about 1 percent. Smaller players such as Lynas , Regis Resources and Evolution Mining dropped 3.5 to 10.4 percent.

U.S.-based drilling giant Boart Longyear dropped 5.4 percent after it said earnings before interest and tax, depreciation and amortisation of around $30 million will miss forecasts of between $34 million and $48 million.

U.S. stocks bounced after three sessions of declines as upbeat retail sales figures and other data pointed to a strengthening economy and lifted optimism about consumer spending.

New Zealand's benchmark NZX50 index was firm, rising 0.3 percent to 5,517.29 and staying within sight of the record high set on Tuesday.

The market's top stocks were mostly higher, with the biggest company Fletcher Building (NZSE: FBU.NZ - news) up 0.9 percent to NZ$8.13, after it had hit a near-19 month low of NZ$8.03 on Thursday.

The number two stock telecommunications company Spark was down 1.4 percent as investors banked gains after the stock's 8.9 percent rally this week after it said it would raise prices.

Medical equipment maker Fisher and Paykel Healthcare , a top-10 stock, was 1.1 percent higher at a record NZ$6.14. (Editing by Shri Navaratnam)