* All sectors participate in rally
* 5,200 seen as key index resistance
* 128 shares up, 63 down, 9 unchanged (Adds analysis, quotes, stocks on the move)
By Swati Pandey and Cecile Lefort
SYDNEY/WELLINGTON, Oct 6 (Reuters) - Australian shares rose for a second day on Tuesday to near 1-month highs, led by banks and miners, after Wall Street rallied overnight.
The S&P/ASX 200 index .AXJO climbed 43.8 points to 5,194.3 by 0140 GMT, coming off an intraday high of 5,220, a level not seen since Sept.10. The benchmark rose 2 percent on Monday.
The index hit a two-year trough late last month on concerns about global growth and on rising uncertainty about China. It has since gained about 6 percent.
For the year, the benchmark is still down about 4 percent and a new Reuters Poll shows the index will likely end 2015 around current levels - marking its first annual loss since 2011. ID:nL4N11O14O
"The ASX has been sold off heavily in recent periods. There's some good deals in the market and sentiment has calmed in global markets for the time being," said IG Markets analyst Angus Nicholson.
However, with questions on whether the Fed will finally raise interest rates in December and about China's potential to surprise on the downside, investors will trade cautiously, Nicholson added.
"There will be a limit to the rally," he said.
Technical analysts expect some selling pressure to emerge around 5,200 point - a key resistance level while 5,000 continued to remain a crucial support.
Investors await the Reserve Bank of Australia's monetary policy meeting later in the day where the central bank is expected to hold rates at a record low 2.0 percent.
All bank shares rose, with Commonwealth Bank CBA.AX and Westpac WBC.AX up 1.3 percent each. Miners BHP Billiton (LONDON:BLT) BHP.AX and Rio Tinto (LONDON:RIO) RIO.AX gained around 2.8 percent each.
Mining services provider Macmohan Holdings MAH.AX jumped 15 percent after announcing a share buyback. ID:nWNBS01FGS
For more individual stocks activity click on STXBZ New Zealand's benchmark NZX 50 index .NZ50 rallied 0.8 percent or 46.41 points to 5,676.95.
New Zealand's state-run pension fund and infrastructure investor Infratil IFT.NZ leapt nearly 3 percent, having plumbed an eight-month low last week. Mighty River MRP.NZ rose 1.8 percent and Contact Energy 1.4 percent.
Shares in Fonterra's FCG.NZ fund, which gives investors exposure to the farmer-owned dairy exporter, dropped 2.5 percent after some felt the trade agreement between 12 Asia-Pacific was below expectations for the milk industry.
"I am very disappointed that the deal falls far short of (the) original ambition to eliminate all tariffs," said Fonterra Chairman John Wilson. (Editing by Richard Borsuk)