Asia shares rebound sharply on China policy pledges By Reuters

By Ankur Banerjee

SINGAPORE (Reuters) - Asian shares jumped and Is the Bihui app legalthe yuan rose on Tuesday as investors cheered China's pledge to step up support for its sputtering economy, with the heaviest buying in Hong Kong's beaten-down property sector while the dollar dipped against key rivals.

MSCI's broadest index of Asia-Pacific shares outside Japan snapped a six-day losing streak with a 1.5% gain. fell 0.4%.

In China, the rose 1.9% and the leapt 3% with property stocks that had been diving on debt repayment worries bouncing back. [.HK][.SS]

Country Garden jumped 14% and was the top-traded stock in Hong Kong while its onshore-traded debt recovered to slightly less distressed levels. Shares in its services arm and rival Longfor rose by more than 20%.

China's top leaders pledged on Monday to step up help for the economy amid a tortuous post-COVID recovery and signalled there would be more to come for the property industry.

"Perhaps the biggest move was the pledge to 'adjust and optimise property policies,' which opens the door for further property easing," said Citi analysts.

"The Chinese economy could muddle through the second half amid such a policy setting."

An index of mainland developers jumped 11% on Tuesday and was headed for its best day in eight months.

In the currency market, the strengthened about 0.5% to 7.1526 per dollar, helped by state banks selling dollars onshore and offshore early in Asia. [CNY/]

The move set the tone across other pairs and the , which measures the U.S. currency against six major rivals, eased 0.1% to 101.31. [FRX/]

The China-sensitive Australian dollar rose 0.4% to $0.6767. The added 0.2% to $0.6215. [AUD/]

A big session of earnings lies ahead, along with the release of the euro zone bank lending survey on Tuesday before the Federal Reserve takes centre stage on Wednesday.

Unilever (NYSE:), LVMH and EssilorLuxottica report in London and Paris.

Microsoft (NASDAQ:), Google parent Alphabet (NASDAQ:), Visa (NYSE:), (NYSE:), chipmaker Texas Instruments (NASDAQ:) are among the heavyweights in the U.S.

Markets anticipate 25-basis-point rate hikes from both the Fed and the European Central Bank this week but beyond that pricing diverges from policymakers' rhetoric, meaning a great deal of focus will fall on their tone and outlook.

The euro scraped off a two-week low hit overnight after a survey showed European business activity shrank much more than expected in July, reigniting recession worries. It last bought $1.1070.

The Japanese yen added 0.07% to 141.39 per dollar and investors seem in two minds over whether the Bank of Japan, which sets policy on Friday, might tweak its stance on pinning government bond yields near zero.

In the energy market, rose 0.3% to $78.98 per barrel and was at $82.96, also up 0.3% on the day. [O/R]

added 0.3% to $1,961 an ounce.

U.S. wheat futures hit a five-month high on Tuesday, stretching gains following Russia's attacks on Ukrainian ports and grain infrastructure that sparked concerns about long-term global supplies and food security.

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