US STOCKS-Futures bounce after sell-off, earnings eyed

* Crude rises above $80 per barrel

* U.S. dollar slips as China rate impact wanes

* Futures up: Dow 28 pts; S&P 5.9 pts; Nasdaq 9.5 pts

* For up-to-the-minute market news see [STXNEWS/US] (Updates prices, adds quote, byline)

By Rodrigo Campos

NEW YORK, Oct 20 (Reuters) - U.S. stock index futures rose on Wednesday as dissipating fears about the effect of an interest rate increase in China weighed on the U.S. dollar and lifted global equities.

A steep sell-off in stocks on Tuesday, triggered by fears banks might be on the hook for billions of dollars in soured mortgage bonds and the China's policy tightening, also provided a floor to equity futures.

"The market's trying to rationalize (Tuesday's) decline, and it looks we might have been overdone," said Art Hogan, chief market analyst at Jefferies & Co in Boston.

"The (market) driver will be a shift away from concern on China to concentrate more on earnings. When we have a micro focus, rather than macro, the market seems to do better, and hopefully that is what will happen today," Hogan said.

A busy earnings week continues Wednesday as Boeing Co , Morgan Stanley and Wells Fargo & Co reported results. Xilinx Inc and Genzyme Corp are also due.

S&P 500 futures rose 5.9 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 28 points, and Nasdaq 100 futures added 9.5 points.

Several U.S. Federal Reserve officials indicated on Tuesday the central bank will soon offer further monetary stimulus to the economy. One policymaker said $100 billion per month in bond buys may be appropriate. For details, see [ID:nN19159837]

Expectations the Fed will print more money have been pivotal in a stocks rally that has extended for almost two months.

General Electric Co , Honeywell International Inc and United Technologies Corp are among the suitors for BAE Systems Plc's aerospace unit that could fetch up to $2 billion, sources said. [ID:nN19135803]

Amylin Pharmaceuticals Inc's lost half of its market value overnight and Eli Lilly slid 5 percent after U.S. health regulators declined to approve a diabetes drug being developed by both companies, saying it needed more study. [ID:nN19207930].

Among economic reports due later is the Fed's Beige Book, a summary of economic conditions gathered from its 12 regional banks, expected at 2 p.m. (1800 GMT).

The U.S. dollar fell against a basket of currencies <.DXY> for the first time in four sessions as the appetite for higher-yielding currencies stabilized after being jolted by China's rate hike. The index was off 0.5 percent.

Light crude futures rose nearly 1 percent to above $80 a barrel, supported by signs that U.S. fuel stockpiles are falling and as investors decided increased borrowing costs in China would do little to dampen its oil use. (Editing by Padraic Cassidy)