http://nz.biz.yahoo.com//090703/16/d6ax.html

(Adds Kagara, banks, comment)

SYDNEY, July 3 (Reuters) - Australian stocks fell 1.4 percent on Friday, reflecting heavy losses in Europe and the United States after a steeper-than-expected slide in U.S. payrolls raised fresh doubts on the health of the global economy.

"The markets have had a good run in the U.S. and here and it's only good news that will keep that going. Yet news are getting a bit mixed at the moment," said Martin Angel, dealer at Patersons Securities Ltd.

The Australian market outperformed Wall Street, where the Dow index .DJI fell 2.6 percent, but fund managers pointed to unconvincing volumes on the local market and said U.S. investors had sold down more heavily ahead of the Independence Day holiday.

The S&P/ASX 200 index .AXJO was down 54.2 points at 3,823.1 at 0452 GMT.

New Zealand's benchmark NZX 50 index .NZ50 fell 0.4 percent to 2,757.5.

"It's very low (volume). People want to just sit on the side for the moment, they don't want to go rushing in because they don't know exactly which way the market is going to go from here," said Martin Angel, dealer at Patersons Securities Ltd.

Losses were led by the resources sector after copper, oil and gold prices all slid, but few sectors escaped Friday's downturn.

Also worries over the fast-approaching reporting season added to the negative sentiment.

STOCKS ON THE MOVE

* Australia's top banks came under pressure on worries over the economic recovery, with falls led by No.2 lender Westpac Banking Corp. (ASX: WBC.ax) , down 2.0 percent to A$19.19, and third-largest lender Commonwealth Bank (ASX: CBA.ax) , down 1.0 percent to A$37.06. No.1 lender National Australia Bank (ASX: NAB.ax) , fell 0.6 percent to A$21.71, and Australia and New Zealand Banking Group (ASX: ANZ.ax) lost 0.1 percent to A$16.11. The nation's largest investment bank, Macquarie Group MQG.AX lost 2.7 percent to A$36.97.

0427 GMT

* Australian miner Kagara (ASX: KZL.ax) defied the trend and rose 5.8 percent to A$0.74. Analysts said the shares were bouncing back after the company completed a share issue last month.

0425 GMT

* Global miner BHP Billiton (ASX: BHP.ax) fell 2.8 percent to A$33.33. BHP said it had agreed to sell its Yabulu nickel refinery for an undisclosed amount, resulting in writedowns of $675 million. [ID:nSYD404718]

Its peer, the world's No.2 iron ore miner Rio Tinto (ASX: RIO.ax) , was on trading halt as it completed the Australian portion of its $15.2 billion rights issue.

Smaller miners Fortescue Metals (ASX: FMG.ax) and OZ Minerals OZL.AX fell 3.8 percent to A$3.53 and 1.7 percent to A$0.87 respectively. Copper prices softened in the U.S. and Europe on Thursday.

0104 GMT

* Shares in oil and gas producers also fell after oil prices shed nearly 4 percent to below $67 dollars per barrel on Thursday. Santos (ASX: STO.ax) declined 2.6 percent to A$14.02, Woodside Petroleum (ASX: WPL.ax) fell 1.2 percent to A$41.15 and Roc Oil (ASX: ROC.ax) fell 4.6 percent to A$0.74.

0103 GMT (Reporting by Mette Fraende)