Australian shares up on solid Wall St; battered miners, banks gain

* ASX 200 up 0.2 percent supported by miners and banks

* 114 shares higher, 76 shares lower, 9 shares unchanged

* Volumes low as investors remain cautious (Adds analysis, quotes, stocks on the move)

By Thuy Ong and Naomi Tajitsu

SYDNEY/WELLINGTON, Sept 25 (Reuters) - Australian shares rose 0.3 percent on Thursday after a solid session on Wall Street prompted investors to pick up recently battered mining and banking stocks, though worries of slowing growth in China checked gains.

Mining stocks, which have underperformed in recent weeks as a supply glut slashed spot iron ore prices by almost 41 percent this year, attracted bargain hunters.

Global iron ore miners BHP Billiton Ltd and Rio Tinto Ltd added 0.8 percent and 0.9 percent, respectively.

"We still expect resources to underperform but they're probably taken a fair bit of the hit already," said Bill Keenan, general manager equities and researcher at Lonsec.

The S&P/ASX 200 index climbed 11.3 points to 5,387.1 by 0147 GMT, with 160.5 million shares trading hands compared to a five-day daily moving average of 589.3 million - the low volume reflecting a cautious market. The benchmark lost 0.7 percent on Wednesday.

"Investors are weighing the merits of bargain hunting after the recent sell off against caution dictated by signs of softening Chinese economic growth and the potential for higher U.S. Interest rates," said Ric Spooner, chief market analyst at CMC Markets in a note to clients.

The benchmark erased almost all of its year-to-date gains earlier this week as foreign investors pulled out of the local equities market on the back of rising bond yields, while a slump in iron ore prices dented resources stocks.

In the banking sector, top lender Commonwealth Bank of Australia gained 0.4 percent, while National Australia Bank rose 0.5 percent.

Some defensive stocks tempered the gains, with top 20 stock Wesfarmers Ltd slipping 0.4 percent, while blood products maker CSL Ltd (Other OTC: CMXHF - news) dropped 0.2 percent.

Goodman Fielder Ltd (Other OTC: GDFLY - news) rallied 1.2 percent after Australia's competition watchdog said it will not oppose Wilmar International Ltd's and First Pacific Co Ltd's proposed acquisition of the company.

New Zealand's benchmark NZX50 index rose 14.9 points to 5,273.85 in early trade, boosted by gains in global indices which put the market on track to post a record closing high.

Gains were led by an 8.5 percent jump in Hallenstein Glasson to a 2 1/2-month high of $NZ3.10 as the struggling clothing retailer reported a slightly smaller-than-forecast fall in annual profits.

Nuplex fell 3.1 percent to NZ$3.12, backing off a 3 1/2-month high of NZ$3.25 hit on Wednesday as investors booked profits on gains made after the chemical and resins company announced it was in discussions with a private equity firm to sell its two of its Australian businesses.

Agricultural supply company PGG Wrightson stumbled 2.4 percent to NZ$0.42 after New Zealand dairy exporter Fonterra's announcement on Wednesday to cut its farmgate milk prices to a six-year low raised concerns that its feed sales may suffer if dairy farmers trim spending this season. (Editing by Shri Navaratnam)