Australia shares snap 3-day losing streak to rise 1.2 pct

* Lower bond yields induce equity buying - analyst

* Caution remains on Fed view, Greece's woes (Adds analysis, quotes, stocks on the move)

By Charlotte Greenfield and Gyles Beckford

SYDNEY/WELLINGTON, June 17 (Reuters) - Australian shares snapped a three-day losing streak to rise 1.2 percent on Wednesday, led by broad-based gains across sectors as investors cherry-picked stocks at bargains, although they still worried about Greece's potential exit from the eurozone.

Analysts said more money moved into equities from bonds after yields dropped on Greece's woes. Investors also awaited the Federal Reserve's latest take on the U.S. economy and interest rates.

Australia's benchmark S&P/ASX 200 index rose 61.1 points to 5,597 by 0231 GMT, its biggest percentage gain in nearly a week. The benchmark edged down 0.1 percent on Tuesday.

"To the extent that credit markets aren't going crazy, then lower bond yields are good for our market," said Credit Suisse (NYSE: CS - news) equities strategist Damien Boey.

"The major developments are simply the risk up in Greece and effect that has on bond yields," he said.

Greek Prime Minister Alexis Tsipras lashed out at Greece's creditors, increasing demand for safe-haven debt. Greece is set to default on a 1.6 billion euro ($1.80 billion) debt repayment to the International Monetary Fund on June 30 unless it receives fresh funds by then.

On Wall Street, the Dow ended Tuesday up 0.64 percent, while the S&P 500 added 0.57 percent and the Nasdaq 0.51 percent.

Supermarket chain Woolworths Ltd rose 2.8 percent as its CEO announced his surprise retirement amid falling sales and shrinking market share.

Financials led gains with all major banking stocks up. Westpac rose 2.5 percent and ANZ was up 1.9 percent.

Mining also had strong gains, with Sandfire Resources rising 9 percent. (For more individual stocks activity click on )

New Zealand stocks dipped to a three-week low as broad based selling of leading stocks sent the benchmark NZX-50 index down 0.4 percent to 5,792.13.

The top-10 stocks, which account for more than half of the main index, were down 0.8 percent, led by Fletcher Building and telecommunications company Spark.

The market has been consolidating since it hit a lifetime high in mid-March, and investors have banked profits as well turned more cautious about the Federal Reserve's policy intentions and Greece's financial crisis.

Among the gainers, New Zealand Refining continued its recent run higher, gaining 3.0 percent to a three-month high. Chemicals company Nuplex rose more than 1 percent for the second straight day.

Power companies, which have been favourites because of their high yield, were knocked lower with Meridian down 1.8 percent and Contact Energy (NZSE: CEN.NZ - news) down 1 percent. (Editing by Muralikumar Anantharaman)