UPDATE 4-Australia shares at fresh 7-mth high, banks lead

(Adds details, comments)

SYDNEY, June 12 (Reuters) - Australian shares firmed 0.4
percent on Friday to end at a fresh 7-month high, boosted by
gains on offshore markets after upbeat data eased concerns
about the global economy.

Investors switched to more risky stocks such as junior iron
ore miners, though banks were well supported, led by Australia
& New Zealand Banking Group (ANZ.AX) gaining 2.5 percent.

Ben Potter, a research analyst at IG Markets, said the
market had rallied hard over the week, gaining 2.3 percent,
with 90 percent of the gains coming from miners and energy
stocks.

"With the calls of bear-market rally and dead-cat bounce
still loud and clear, markets continue to add points, defying
what many believe should be happening," said Potter.

The benchmark S&P/ASX 200 index .AXJO ended up 15.0
points at 4,062.2, its highest close since Nov 10. The index is
up about 29 percent after reaching a five-year closing low in
March.

"If you look at the economic data that has come out, that's
proven the worst is over unless something unforeseen happens,"
said Joseph Youssef, head of private clients at Austock Group.

He said volatility had eased and credit spreads narrowed,
boosting investor confidence.

Still, caution remains with some traders preferring to take
profits despite better-than-expected Chinese industrial
production data and retail sales.

Commodity prices rose as the U.S. dollar weakened due to
less demand for safe-haven investments, though on Friday the
greenback regained some ground. [USD/]

Oil prices slid towards $72 a barrel on Friday, as
investors locked in gains after a climb toward eight-month
highs. [O/R]

New Zealand's benchmark NZX 50 index .NZ50 rose 0.5
percent to 2,809.8, helped by New Zealand retail sales rising
in April as consumers showed some cautious confidence in the
face of deep recession and rising unemployment.
[ID:nWEL426122].

OZ Minerals Ltd (OZL.AX), which resumed trading on Friday
after shareholders approved a $1.39 billion deal to sell most
of its assets to China's Minmetals, surged 17.4 percent to
A$1.045 amid talk the company could be attractive to some
acquirer.

Iron ore miner Brockman Resources (BRM.AX) added 5.5
percent to A$1.35 and Mt Gibson Iron (MGX.AX) jumped 6.9
percent to A$1.155.

But Fortescue Metals Group (FMG.AX), Australia's
third-biggest iron ore miner, suffered a bout of profit-taking
after surging about 50 percent over the past week on
speculation it could further Chinese investment interest.

On Friday, Fortescue lost 4.6 percent to A$4.15.

BHP Billiton Ltd (BHP.AX), the world's biggest miner, fell
0.6 percent to A$38.04, while smaller rival Rio Tinto Ltd
(RIO.AX) added 0.2 percent to A$77.20. Both stocks have risen
sharply after announcing an iron ore joint venture last week.

A newspaper report said on Friday China could impose trade
sanctions against the two miners if their ore venture was
formed without seeking Chinese competition agencies approvals.

Among the banks, Commonwealth Bank of Australia Ltd
(CBA.AX) gained 1.0 percent to A$37.80 after traders switched
out of resource stocks to buy into the recent laggards.

(Reporting by Bruce Hextall; Editing by Mark Bendeich)