Android emulator rotates but app doesn't redraw

I've seen pictures of this elsewhere, but from some time back where the answer is generally "this is a known issue with Android 2.3" I'm using 4.4, so that's definitely not the answer.

I have about the simplest program ever: "Hello, Android". When I launch the emulator, it load up in portrait mode. Using Fn-Ctrl-F11 (Mac), the emulator rotates to landscape mode. But the application and the phone controls do not redraw - the whole thing just looks sideways.

Here's the manifest:

<?xml version="1.0" encoding="utf-8"?>
<manifest xmlns:android="http://schemas.android.com/apk/res/android"
package="com.test.helloandroid"
android:versionCode="1"
android:versionName="1.0" >

<uses-sdk
    android:minSdkVersion="18"
    android:targetSdkVersion="18" />

<application
    android:allowBackup="true"
    android:icon="@drawable/ic_launcher"
    android:label="@string/app_name"
    android:theme="@style/AppTheme" >
    <activity
        android:name="com.test.helloandroid.Hello"
        android:label="@string/app_name" >
        <intent-filter>
            <action android:name="android.intent.action.MAIN" />

            <category android:name="android.intent.category.LAUNCHER" />
        </intent-filter>
    </activity>
</application>

</manifest>

and the Activity XML file:

<LinearLayout xmlns:android="http://schemas.android.com/apk/res/android"
xmlns:tools="http://schemas.android.com/tools"
android:layout_width="match_parent"
android:layout_height="match_parent"

tools:context=".Hello" >

<TextView
    android:layout_width="wrap_content"
    android:layout_height="wrap_content"
    android:text="@string/hello_world" />

</LinearLayout>

I'm building with Eclipse, the ADT bundle build v22.3.0-887826, although I can't imagine that matters for something this trivial.

My emulator is for device Galaxy Nexus, Android 4.4 API level 19. I've tried this with Hardware keyboard present marked and unmarked. I found reference to a "keyboard lid support" setting which I haven't seen anywhere - this comment is from 3/12 & so may be outdated.

This is my first Android app, so I'm a complete novice at debugging in this environment. TIA for any suggestions on what I'm missing.

EDIT: Adding code for hello.java

package com.test.helloandroid;

import android.os.Bundle;
import android.app.Activity;
import android.view.Menu;

public class Hello extends Activity {

@Override
protected void onCreate(Bundle savedInstanceState) {
    super.onCreate(savedInstanceState);
    setContentView(R.layout.activity_hello);
}


@Override
public boolean onCreateOptionsMenu(Menu menu) {
    // Inflate the menu; this adds items to the action bar if it is present.
    getMenuInflater().inflate(R.menu.hello, menu);
    return true;
}

}