RPT-GLOBAL MARKETS-China shares pick up, Aussie dollar falls

                                
 * Shanghai stocks pick up after rout, regional shares firm
                                
 * PMI surveys show China economy maintaining upward
momentum
                                
 * Aussie dollar falls as c. bank says low rates appropriate
                                
 * Euro gains ground as German retail sales beat forecasts
  (Repeats to more subscribers)
                                
 By Susan Fenton
                                
 HONG KONG, Sept 1 (Reuters) - Chinese shares bucked up on
Tuesday after Monday's rout, helped by upbeat economic data,
but the Aussie dollar fell after the central bank dashed
expectations it would shift to a tighter policy bias.
                                
 Major European stock futures <STXEc1> were up 0.7 percent
and the euro <EUR=> firmed to $1.4370 after
better-than-expected German retail sales. [ID:nL1226897]
                                
 U.S. equity futures <SPc1> were 0.3 percent higher,
following gains in Asia and some signs of stabilisation in
Chinese markets.
                                
 Shares in Shanghai <.SSEC> were up 0.7 percent by
mid-afternoon after plunging nearly 7 percent in the previous
session -- their worst one-day loss since mid-2008 -- on
persistent fears the government is reining in bank lending to
head off potential asset bubbles.
                                
 Stocks elsewhere in Asia posted modest gains, with
investors keeping a wary eye on Chinese markets, although
Taiwan's benchmark share index <.TWII> jumped 2.8 percent on
the day on bullish earnings from the tech sector. [.TW]
                                
 Investors in China were buoyed by data showing the Chinese
economy maintained its upward momentum in August, with two
purchasing managers' indexes rising to their highest levels in
16 months. [[ID:nPEK62430]
                                
 "We're seeing an improvement in the PMI consistent with an
economy still gaining momentum in August," said Glenn Maguire,
Societe Generale's Chief Asia Economist.
                                
 "If you look at the global suite of data for July, which
were more or less strong, China continues to be in the vanguard
of that trend."
                                
 Japan's Nikkei <.N225> closed up 0.4 percent, helped by the
stronger tone in Shanghai, but gains were limited by a firm yen
<JPY=>, which put pressure on some exporters.
                                
 The yen remained close to 7-week highs reached on Monday in
the wake of the Democratic Party's landslide election victory.
                                
 The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> rose 1.4 percent.
                                
 The index, like other major global benchmarks, has
sputtered in recent weeks on fears that a six-month equity
rally has run too far ahead of economic fundamentals, but it is
still up nearly 50 percent so far this year.
                                
 BILL FUTURES RALLY
                                
 Australia's central bank sent the Aussie dollar <AUD=D4>
sliding by saying the current low level of Australian interest
rates, at a record low of 3 percent, was appropriate.
[ID:nSYD483279]
                                
 That dashed some expectations it would shift to a tighter
monetary bias. The Australian dollar <AUD=D4> fell 0.2 percent
on the day to $0.8418, after edging up close to last month's
11-month peak ahead of the central bank's statement.
                                
 "It sounds like the RBA doesn't want to bang the drum about
rate hikes," Rory Robertson, interest rate strategist at
Macquarie, said after the meeting.
                                
 "Yes, the economy is in much better shape than anyone
thought a few months ago. But it's not like it needs to be
restrained, either."
                                
 Australian bill futures <0#YBA:> rallied as investors
scaled back the chance of a rate rise in October.
                                
 Across the region, there was lingering concern that while
economic data may be improving, the strength of a global
economic recovery is still in doubt.
                                
 That was reinforced by a sharper-than-expected 20.6 percent
drop in South Korea's exports in August -- extending
double-digit annual declines to a 10th straight month --
although equity investors took the data in their stride.
                                
 Korea's benchmark KOSPI index <.KSII> finished 2 percent
higher, helped by a 7.6 percent surge in shares of Hyundai
Motor <005380.KS> and a 4.7 percent gain in Kia Motors
<000270.KS> on the view that broader recent data suggests the
economic environment is improving.
                                
 In Taiwan, Hon Hai <2317.TW>, the world's largest
electronics maker, led technology shares higher, surging 6.8
percent after its quarterly profit beat forecasts [ID:nTP3024].
                                
 Commodities markets were more nervous amid concern about
Chinese demand, but London copper recovered some losses after
sliding more than 3 percent in early trade after a holiday on
Monday.
                                
 U.S. crude futures <CLc1> hovered around $70 a barrel after
sliding almost 4 percent on Monday on fears that Chinese
lending curbs would cool its economic recovery and keep a lid
on energy demand. [O/R]
 (Editing by Kim Coghill)