http://nz.biz.yahoo.com//090702/16/d5q4.html

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By Simone Giuliani

MELBOURNE, July 2 (Reuters) - Australian shares rose 0.1 percent on Thursday, led by BHP Billiton Ltd (ASX: BHP.ax) , but pared back earlier gains as caution set in ahead of key earnings and economic news, starting with the latest U.S. payrolls report.

The benchmark S&P/ASX 200 index .AXJO rose 3.3 points to 3,877.3, after having climbed as high as 3,910.2 in early trade.

The market was driven higher by reports showing manufacturing shrunk less than initially thought in Europe, was growing modestly in China and reached its highest level of activity in nearly a year in the United States in June. [ID:nN01366244]

However, gains evaporated in later trade as investors turned a cautious eye to news ahead, with earnings reports due to start flowing in Australia next month and a report on U.S. government nonfarm payrolls due out later on Thursday.

"The environment may not be as nervous as it was a few months ago but certainly there is no significant u-turn in growth projections," said Jamie Spiteri, senior dealer at Shaw Stockbroking.

New Zealand's benchmark NZX 50 index .NZ50 fell 12.2 points, or 0.4 percent, to 2,768.2, having risen as high as 2,806.5 in early trade.

Global miner BHP Billiton advanced 1.2 percent to A$34.30 as economic recovery hopes helped push copper to its highest level in more than two weeks. [ID:nL1657892]

Gold miners also gained after the price of the precious metal soared with U.S. gold futures nearing $950 an ounce. [ID:nN01527965]

Newcrest Mining Ltd (ASX: NCM.ax) , Australia's top gold miner, rose 3 percent to A$31.20 and Lihir Gold Ltd LGL.AX advanced 1.7 percent to A$2.98.

Energy stocks slipped as a larger-than-expected rise in U.S. gasoline stocks dented hopes of a demand recovery. [nSYD481718]. Woodside Petroleum Ltd (ASX: WPL.ax) fell 1.9 percent to A$41.66 and Beach Petroleum (ASX: BPT.ax) dropped 1.2 percent to A$0.795.