* Hang Seng up 0.1 pct, Shanghai up 0.5 pct * Choppy trade, Moody's U.S. warning adds to debt jitters * Battered Chinese banking biggest drags in Shanghai By Yixin Chen and Clement Tan HONG KONG/SHANGHAI, July 14 (Reuters) - Record-high gold prices lifted Shanghai shares on Thursday, a day when most Asian stock markets were down or flat as investors fretted about debt woes on both sides of the Atlantic Ocean. The Shanghai Composite Index closed up 0.5 percent to 2,810.4 points, lifted by strong gold miners for a second-straight session. Spot gold hit a high of $1,592.70 an ounce and was up 0.65 percent at $1,592.24 an ounce at 0920 GMT. In Shanghai, Zijin Mining Group Co was the most active shares and the biggest gainers in the market, jumping 6.3 percent, while Jinduicheng Molybdenum Co rallied 2.5 percent. Given worries about Europe and, increasingly, about a possibility of the United States have a default declared on its debt next month, interest in Asian shares was mooted. "Nothing's safe except gold right now," said Jackson Wong, a vice-president at Tanrich Securities in Hong Kong. "It is unimaginable the U.S. would default. Everybody's just very nervous...even though that is probably unlikely to happen." In Shanghai, uncertainty about global markets weighed on many A shares, with large cap banking and energy issues, the biggest drags on the Shanghai benchmark. Analysts expect the benchmark to hover around the psychologically important 2,800 level, with inflation pressures still a key drag for the Chinese economy. "The outlook differs widely on inflation. While many say that inflation may have hit a peak in June, nobody can be sure about that," said Wen Lijun, an analyst at Nanjing Securities. "In this scenario, the index may not have much room to rise." STEADY CLIMB BACK In Hong Kong, the Hang Seng Index was down 0.8 percent at midday, but then began a steady climb, closing up 0.1 percent at 21,940.2 points. Turnover totalled HK$61.8 billion, almost 5 percent less than Wednesday's and more than 11 percent less than its 20-day average. Boosting the index was a late rally in Hutchison Whampoa , which was up 0.9 percent. The past two days, two brokerages have upgraded their outlook on the stock. On Thursday, Mirae Asset Management said "Long-only investors should take advantage of the volatile markets and accumulate Hutchison on any share price weakness." PetroChina Co Ltd 1.8 percent gain on the day and HSBC Holdings recovery from early losses also supported the Hang Seng as it crept into positive territory despite weakness in Chinese property names. Evergrande Real Estate Co Ltd lost 4.6 percent with much of its losses coming after Chinese state radio reported Beijing will restrict house purchases in some second- and third-tier cities to rein in house prices. The reversal in Hong Kong shares paralleled a recovery in U.S. stock index futures after a Moody's warning that the United States could lose its prized top credit rating had spooked investors, triggering a flight from risky assets. "The negative sentiment is a little overdone," said Mark To, head of research at Wing Fung Financial Group. "Most of the heavyweights could see some kind of a mild rebound, but it could be until end of July before we see things easing up a little." (Editing by Richard Borsuk)

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