Australia shares set to rebound and open higher, NZ gains

Australian shares are set to open higher on Wednesday, tracking a recovery on Wall Street after a sharp sell-off in the previous session, as China's efforts to stabilize the yuan alleviated fears of a possible currency war between the world's two largest economies.

The local share price index futures YAPcm1 rose 0.74% to 6,437 by 2030 GMT, a 41.1-point discount to the underlying S&P/ASX 200 index  close. The benchmark ended down 2.4% on Tuesday.

New Zealand's benchmark S&P/NZX 50 index  rose by 0.5% to 10,638.37 in early trade.