Multitouch.inputMode = MultitouchInputMode.GESTURE;

var mySprite = new Sprite();
mySprite.addEventListener(TransformGestureEvent.GESTURE_ROTATE , onRotate );
mySprite.graphics.beginFill(0x336699);
mySprite.graphics.drawRect(0, 0, 100, 80);
var myTextField = new TextField();
myTextField.y = 200;
addChild(mySprite);
addChild(myTextField);

function onRotate(evt:TransformGestureEvent):void {

    evt.target.rotation -= 45;

    if (evt.phase==GesturePhase.BEGIN) {
        myTextField.text = "Begin";
    }
    if (evt.phase==GesturePhase.UPDATE) {
        myTextField.text = "Update";
    }
    if (evt.phase==GesturePhase.END) {
        myTextField.text = "End";
    }
}

 package
{
    import flash.display.Bitmap;
    import flash.display.Sprite;
    import flash.events.TransformGestureEvent;
    import flash.text.TextField;
    import flash.text.TextFormat;
    import flash.ui.Multitouch;
    import flash.ui.MultitouchInputMode;
    
    [SWF(width=320, height=460, frameRate=24, backgroundColor=0x000000)]
    public class TransformGestureExample2 extends Sprite
    {
        [Embed(source="african_elephant.jpg")]
        public var ElephantImage:Class;
        public var scaleDebug:TextField;
        public var rotateDebug:TextField;

        public function TransformGestureExample2()
        {
            // Debug
            var tf:TextFormat = new TextFormat();
            tf.color = 0xffffff;
            tf.font = "Helvetica";
            tf.size = 11;
            this.scaleDebug = new TextField();
            this.scaleDebug.width = 310;
            this.scaleDebug.defaultTextFormat = tf;
            this.scaleDebug.x = 2;
            this.scaleDebug.y = 2;
            this.stage.addChild(this.scaleDebug);
            this.rotateDebug = new TextField();
            this.rotateDebug.width = 310;
            this.rotateDebug.defaultTextFormat = tf;
            this.rotateDebug.x = 2;
            this.rotateDebug.y = 15;
            this.stage.addChild(this.rotateDebug);

            var elephantBitmap:Bitmap = new ElephantImage();
            var elephant:Sprite = new Sprite();
            
            elephant.addChild(elephantBitmap);
            
            elephant.x = 160;
            elephant.y = 230;
            
            elephantBitmap.x = (300 - (elephantBitmap.bitmapData.width / 2)) * -1;
            elephantBitmap.y = (400 - (elephantBitmap.bitmapData.height / 2)) *-1;
            
            this.addChild(elephant);

            Multitouch.inputMode = MultitouchInputMode.GESTURE;
            elephant.addEventListener(TransformGestureEvent.GESTURE_ZOOM, onZoom);
            elephant.addEventListener(TransformGestureEvent.GESTURE_ROTATE, onRotate);
        }
        
        private function onZoom(e:TransformGestureEvent):void
        {
            this.scaleDebug.text = (e.scaleX + ", " + e.scaleY);
            var elephant:Sprite = e.target as Sprite;
            elephant.scaleX *= e.scaleX;
            elephant.scaleY *= e.scaleY;
        }
        
        private function onRotate(e:TransformGestureEvent):void
        {
            var elephant:Sprite = e.target as Sprite;
            this.rotateDebug.text = String(e.rotation);
            elephant.rotation += e.rotation;
        }
    }
}