Australia shares rise on RBA rate cut hopes, ANZ up on earnings

* Shares (Berlin: DI6.BE - news) up 0.5 pct on expectations of RBA rate cut

* ANZ bank gains as results beat forecasts

* Resources sector underperforms

* 116 shares up, 72 down and 12 unchanged (Adds analysis, quotes, stocks on the move)

By Swati Pandey and Gyles Beckford

SYDNEY/WELLINGTON, May 5 (Reuters) - Australian shares were up 0.5 percent on Tuesday with banks leading gains on expectations the central bank will deliver a cut in interest rates when it meets shortly.

Markets are pricing in a 60 to 70 percent probability of an easing following the Reserve Bank of Australia's (RBA) monthly policy meeting. A decision will be announced at 0430 GMT.

The S&P/ASX 200 index rose 30 points to 5,858.4 by 0154 GMT, after hitting a high of 5,901.8 in early deals.

The market has had a poor run over the last two months and capped its worst monthly performance in five months in April. The benchmark has made four previous unsuccessful attempts to breach the 6,000-mark which is proving to be a formidable barrier.

"We had a positive lead from Wall Street and there is anticipation of a rate cut today. The ANZ result today was well received," said Bill Keenan, general manager equities research at Lonsec.

ANZ Bank rose 3.7 percent after first half results beat forecast.

"It's still going to be tough to cross 6000," without a rally in mining shares, he added.

Other major banks including CBA and NAB were up 1.2 percent and 0.7 percent respectively.

Domino's Pizza rose to an all-time high after Morgan Stanley (Xetra: 885836 - news) raised its price target to A$50 from A$40.

The Resources sector was the only one trading in the red with major miner BHP down 1.6 percent while Newcrest Mining was off 0.5 percent.

On Wall Street, the Dow had ended Monday up 0.26 percent, while the S&P 500 gained 0.29 percent and the Nasdaq 0.23 percent.

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New Zealand's benchmark NZX50 index was marginally firmer at 5,774.87.

Accounting software company Xero (Frankfurt: 0XE.F - news) , and utilities investor Infratil were each up about 2 percent, with smaller gains for Auckland International Airport and casino operator Sky City.

The market's top stock Fletcher Building (NZSE: FBU.NZ - news) clawed back early losses to nudge higher after saying it expected its full year earnings to be at the lower end of previous guidance.

Movie theatre software company Vista Group rose 4 percent on slight volumes to its highest price since listing last August, as it said it had signed a deal with the United (Shenzhen: 000925.SZ - news) States's second largest chain. (Editing by Shri Navaratnam)