* HK shares up 0.75 pct, amid cautious optimism on G7 yen intervention
* China shares up 0.6 pct, large caps lead
* China Overseas Land up 5.14 pct on strong earnings report
By Yixin Chen and Clement Tan
HONG KONG, March 18 (Reuters) - China property issues led broad gains in Hong Kong stocks on Friday morning as investors turned cautiously optimistic after the Group of Seven rich nations agreed to a rare joint intervention to restrain a soaring yen.
"A yen pull-back would reduce carry trade pressure," said Ben Kwong, chief operating officer at KSI Asia Ltd. "If this continues, it will benefit the Nikkei and other stock markets, even commodity markets."
The benchmark Hang Seng Index was up 0.75 percent at 22,451.29 by the midday trading break. China Overseas Land & Investment Ltd , the country's largest developer by market value, was up 5.1 percent after reporting 2010 net profit rose by two thirds.
Analysts said its strong earnings report gave fresh trading impetus after a double negative impact late last week, with Hong Kong banks beginning to raise mortgage rates around the same time as Japan's earthquake.
Other property counters also gained, including China Resources Land Ltd , up 5.8 percent, and Henderson Land Development Co Ltd , up 3.73= percent.
The Hang Seng Index traded above its 200-day moving average after dipping below the key technical level at yesterday's close. A close above this level, currently at 22,358.01, needed to come in good volume to encourage buyers to return to the market, said traders.
LARGE CAPS LEAD SHANGHAI GAINS
China's main stock index was up 0.6 percent by midday, led by large-caps such as PetroChina Co Ltd , after it posted a record quarterly profit.
PetroChina, the world's second-biggest oil and gas producer by market value, posted an 81 percent rise in fourth-quarter net profit on the back of strong crude oil prices and robust domestic economic growth.
PetroChina, China's largest listed company by market capitalisation, was up 0.7 percent, while Sinopec Shandong Taishan Petroleum Co rose 4 percent.
The benchmark Shanghai Composite Index was at 2,913.6 points. after a 1.1 percent fall on Thursday on concern over radiation leaks in Japan.
Analysts said the most important influence on the index was China's next policy tightening step. Japan's crisis sparked worries in some sectors but would not change the index's trend in the longer term.
"The influence of Japan's crisis is temporary," said Wang Aochao, analyst at UOB Kay Hian in Shanghai. "What we need to worry about is the next tightening steps by the government."
Almost all 15 securities listed on the Shanghai and Shenzhen markets rose. Haitong Securities Co Ltd , China's No.2 listed brokerage, was up 2.1 percent, and GF Securities Co Ltd rose 2.8 percent.
Salt producers, the biggest gainer on Thursday, underperformed after China's economic agency told shoppers to stop panic buying , blaming baseless rumours that its iodine content could prevent radiation sickness.
Yunnan Salt & Chemical Industry Co Ltd tumbled 7 percent after jumping by its 10 percent daily limit on Thursday, while Inner Mongolia Lantai Industrial Co Ltd dropped 8.9 percent. (Editing by Chris Lewis)