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Australia shares up , but caution on Greece, China cap gains

Published 13/07/2015, 12:42 pm
© Reuters.  Australia shares up , but caution on Greece, China cap gains
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* Shares up 0.4 percent

* Healthcare sector a big gainer

* Market looking for clearer signals from China, Greece - analysts (Adds analysis, quotes, stocks on the move)

By Charlotte Greenfield and Gyles Beckford

SYDNEY/WELLINGTON, July 13 (Reuters) - Australian shares inched up on Monday but gains were muted as investors kept a wary watch on the Greek debt crisis as the latest emergency summit ended with no deal, further prolonging an anxious wait for a resolution.

The S&P/ASX 200 index .AXJO rose 22.12 points, or 0.4 percent, to 5,514 by 0215 GMT. The benchmark edged up 0.4 percent on Friday, ending the week down 0.84 percent.

"Basically the market's caught up with what's happening in Greece and the reports that we're getting in real time," said Damien Boey, equity strategist at Credit Suisse.

"It's quite hard to gauge the direction the news is going and the market's really reflecting that," he said.

Hopes for some resolution to the Greek drama were dashed on Sunday when euro zone leaders told the cash-strapped Greek government it must enact key reforms this week to restore trust before they will open talks on a financial rescue. ID:nL5N0ZS09X

Investors were also watching the Chinese stock markets, which were a bit volatile in early trade after a two-day bounce last week raised hopes of stabilisation following a barrage of government support measures to stem the rout.

The trade numbers out of China - Australia's biggest export market - showed some improvement and should underpin sentiment.

The health care sector led gains with Cochlear Ltd COH.AX rising 6.9 percent after receiving an upgrade from JP Morgan while CSL Ltd CSL.AX rose 2.2 percent.

The energy and mining sectors suffered losses. Gold miner Beadell Resources BDR.AX fell as much as 8.8 percent after announcing a delay in commencing some of its mining operation in Brazil. ID:nL4N0ZT0PM

However, mineral explorer Excelsior Gold rose as much as 7.9 percent after the mineral explorer accepted a credit approved funding package from Macquarie Bank. ID:nL4N0ZT07S

Qantas Airways Ltd QAN.AX gained 4.2 percent after a ratings upgrade by Morning star to hold, from reduce.

For more individual stocks activity click on STXBZ

New Zealand's benchmark NZX50 share index .NZ50 was trading weaker, down 0.4 percent at 5,703.36, holding above a six month low touched last week as investors remained cautious.

Weakness among the top-10 stocks .NZ10 weighed on the broader index with power company Meridian Energy MEL.NZ down 3.3 percent, casino operator Sky City SKC.NZ down 1.2 percent, with lesser falls for Auckland International Airport AIA.NZ and Fletcher Building FBU.NZ .

Uncertainty over Greece and nervousness about Chinese equity markets weighed on local sentiment.

Brokers have been pointing to the market consolidating in a broad range after a record breaking run earlier in the year which has prompted some investors to book profits.

Telecommunications network operator Chorus CNU.NZ dipped 1.8 percent to a five month low, while fast food operator Restaurant Brands RBD.NZ was 1 percent lower.

(Editing by Shri Navaratnam)

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