* Shares up 0.7 percent
* Metals and banks among bigger gainers
* 147 shares up, 45 down and 8 unchanged (Adds analysis, quotes, stocks on the move)
By Pauline Askin and Naomi Tajitsu
SYDNEY/WELLINGTON, July 10 (Reuters) - Australian shares rose 0.7 percent on Friday on optimism after Chinese regulators enforced strict measures to curb a fierce equities sell-off and some hopes rose for a deal on Greece at a weekend summit of European leaders.
Greece offered new reform proposals to creditors, spurring hopes of a cash-for-reform deal. ID:nL3N0ZP6KE
The S&P/ASX 200 index .AXJO gained 41.7 points in a broad-based rally to 5,518.0 by 0209 GMT. After slipping to its lowest levels since January, the benchmark barely changed on Thursday.
"There seems to be a bit of optimism ...but there's still a lot of uncertainty around Greece and China so I'm not sure how this will go as we head into the weekend," Damien Hennessy, co-founder Heurisic Investment Systems said.
The market "is still at reasonable levels, it's not as if it's outstandingly cheap", he said.
Despite Friday's gains, the market is on track to end the week in negative territory for the third consecutive week.
Mining stocks fared well after a rebound in iron ore prices. BHP Billiton BHP.AX rose 2.4 percent, Rio Tinto RIO.AX by 2.2 percent. ID:nL3N0ZP295
The major banks rose with Westpac WBC.AX up 0.8 percent and CBA CBA.AX 0.6 percent.
Sigma Pharmaceuticals SIP.AX fell 2.6 percent on rating downgrade by Morningstar while technology start-up Reffind RFN.AX continued its winning streak on the second day of listing. ID:nL3N0ZQ17T ID:nL3N0ZQ16Q
For more individual stocks activity click on STXBZ
New Zealand's benchmark NZX 50 index .NZ50 rose 0.1 percent or 6.8 points to 5,755.3.
New Zealand's benchmark NZX50 share index .NZ50 was up 0.07 percent or 4.05 points to 5,741.5.
SkyCity Entertainment SKC.NZ climbed 1.2 percent, supported after Auckland Council said that the casino operator could proceed with its plans to build a convention centre in the city without public consultation. ID:nWNBS0104N
Xero XRO.NZ jumped 5.8 percent to NZ$17.99 ($12.13), bouncing off a five-month low of NZ$16.65 hit on Thursday after the cloud-based software developer said it had expanding its payroll and inventory management tools for firms in the United States, where the fast growing company is expanding. ID:nBw9tj9MYa
Xero was supported by demand to buy on dips after its shares have fallen 12 percent so far this month. Outdoor retailer Kathmandu KMD.NZ also benefited from dip buying, which lifted shares 2.6 percent.
Further gains were limited by a 1.5 percent slide in online auction site Trade Me TME.NZ , while Meridian Energy MEL.NZ slipped 0.7 percent.
(Editing by Richard Borsuk)