Reuters Finance News, Australia

(Adds AWB)

SYDNEY, May 9 (Reuters) - Australian shares rose 1.3 percent on Friday, led up by a strong financial sector after National Australia Bank Ltd (ASX: NAB.ax) reported upbeat first-half earnings, while strong commodity prices lifted resource firms.

The benchmark S&P/ASX 200 index .AXJO rose 73.2 points to 5,796.4 by 0323 GMT, adding to a near 1 percent rise in the previous session.

New Zealand's benchmark NZX-50 index .NZ50 rose 0.1 percent, or 2.92 points, to 3,628.52. Top stock Telecom Corp Ltd (NZX: TEL.nz) was down 1.3 percent at NZ$3.92.

STOCKS ON THE MOVE

* AWB Ltd (ASX: AWB.ax) , Australia's main wheat exporter, fell 3.8 percent to A$3.76.

JP Morgan downgraded its rating on AWB to underweight from neutral, saying that the recent rise in the firm's share price was likely overdone given the risk of a capital raising in the near term.

0323 GMT

* Salmon farmer Tassal Group Ltd (ASX: TGR.ax) rose 8.5 percent to $2.93 after it reiterated in a presentation to investors that it sees fiscal 2008 and 2009 net profit at A$21 million ($19.8 million) and A$30 million, respectively.

The firm posted a net profit of A$15.7 million in fiscal 2007.

0206 GMT

* NAB shares rose 3.9 percent to A$32.20.

NAB, the nation's top lender by assets, reported an 8 percent rise in first-half core profit, just ahead of analysts' forecasts and raised its interim dividend [ID:nSYD11706].

However, it raised its charge for bad and doubtful debts by 86 percent and warned of slowing credit growth.

Among the other top banks, Commonwealth Bank of Australia Ltd (ASX: CBA.ax) added 1 percent to A$44.15, Australia and New Zealand Banking Group Ltd (ASX: ANZ.ax) gained 2 percent to A$22.61 while Westpac Banking Corp (ASX: WBC.ax) was up 0.2 percent at A$25.73.

0048 GMT

* Resource firms rose after oil prices CLc1 hit a fresh record above $124 a barrel on strong demand for diesel, while gold XAU= and platinum prices also surged as the U.S. dollar retreated against the euro.

BHP Billiton Ltd (ASX: BHP.ax) , the world's top miner and Australia's top oil and gas producer, added 2.5 percent to A$46.07, while its main rival and takeover target, Rio Tinto Ltd (ASX: RIO.ax) , rose 1.1 percent to A$146.96.

Oil and gas firm Tap Oil (ASX: TAP.ax) rose 4.1 percent to A$1.87, while gold miner Lihir Gold LGL.AX was up 2.3 percent at A$3.08.

0046 GMT

* Property firm Centro Properties Group CNP.AX rose 7.5 percent to A$0.505, following a two-day trading halt, after it said its banks had agreed to a seven month extension on A$2.8 billion ($2.6 billion) of maturing debt [ID:nSYD56186].

0043 GMT

* The Warehouse Ltd (NZX: WHS.nz) , New Zealand's biggest listed retailer and a takeover target, fell 1.8 percent to NZ$5.40 after it said third-quarter sales slipped 4.3 percent on a year earlier amid softer consumer demand and mild weather [ID:nWEL127829].

0043 GMT ($1=A$1.06) (Reporting by Geraldine Chua)