(Adds details, comments) 
    SYDNEY, May 1 (Reuters) - Australian shares fell 0.8 percent 
on Thursday as weaker commodity prices weighed down on some 
resource firms, while Westpac Banking Corp <WBC.AX> erased gains 
on nagging worries about the outlook for bank profits. 
    Westpac's shares rose over 2 percent in early trade after it 
posted first-half earnings that met market forecasts, but they 
turned lower along with losses in other banks, amid concerns the 
sector will see lacklustre earnings over the coming months. 
    "It was a good, solid result for Westpac," said Paul Xiradis, 
chief executive officer at boutique fund Ausbil Dexia. 
    "But there are still some question marks looking forward 
about the earnings profile of the banks, particularly if we are 
entering into a weaker economy." 
    The benchmark S&P/ASX 200 index <.AXJO> fell 43.1 points to 
5,552.6 by 0113 GMT, after falling 0.2 percent in the previous 
session. 
    New Zealand's benchmark NZX-50 index <.NZ50> nudged up 0.15 
percent, or 5.48 points, to 3,630.28. Top stock Telecom Corp Ltd 
<TEL.NZ> was up 1.3 percent at NZ$3.83. 
    STOCKS ON THE MOVE 
    * Westpac, Australia's fourth-biggest lender, dipped 0.1 
percent to A$24.46 after rising as much as 2.5 percent earlier in 
the session. 
    Westpac posted a 10 percent rise in first-half core profit 
but warned it expected banks to face slower loan growth, higher 
charges for bad loans to consumers and businesses, and saw higher 
funding costs continuing as Australian economic growth slowed 
[ID:nSYD330385]. 
    Among the other top banks, National Australia Bank Ltd 
<NAB.AX> fell 1.4 percent to A$29.79, Commonwealth Bank of 
Australia Ltd <CBA.AX> lost 1.7 percent to A$44.10 and Australia 
and New Zealand Banking Group Ltd <ANZ.AX> slipped 0.5 percent to 
A$21.79. 
    0112 GMT 
    * Resource firms slipped after oil prices <CLc1> fell $2 a 
barrel, while gold <XAU=> also fell on Wednesday. 
    BHP Billiton Ltd <BHP.AX>, the world's top miner and 
Australia's top oil and gas producer, fell 0.5 percent to 
A$42.06, while its main rival and takeover target, Rio Tinto Ltd 
<RIO.AX>, lost 1 percent to A$134.70. 
    Oil and gas firm Woodside Petroleum Ltd <WPL.AX> fell 0.5 
percent to A$55.65, while gold miner Newcrest Mining <NCM.AX> 
fell 1.5 percent to A$28.47. 
    0043 GMT 
    * Investment group Allco Finance Ltd <AFG.AX> rose 8.6 
percent to A$1.14 after it said it had reached an agreement with 
financiers to extend the maturity of a A$250 million loan 
facility to May 30, from May 1. 
    Allso also said it faced a loss in excess of A$1.5 billion 
($1.4 billion) in fiscal 2008 due to writedowns, impairments, 
cheap asset sales and restructuring costs [nSYD165386]. 
    0039 GMT 
 ($1=A$1.06) 
 (Reporting by Geraldine Chua) 
 (([email protected]; +61 2 9373 1818; Reuters 
Messaging: [email protected])) 
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