CHINA MARKETS: Yuan Rises; Rates Down; Stocks Fall

     BEIJING (MNI) - The yuan rose against the U.S. dollar Friday morning after

the PBOC set a stronger fixing for the day.

     The yuan was last at 6.5523 against the U.S. unit, stronger than the

official closing price of 6.5543 on Thursday. 

     The People's Bank of China set the yuan central parity rate against the

U.S. dollar at 6.5423 Friday, slightly stronger than Thursday's 6.5465.

     Money market rates were down as the PBOC injected a net CNY200 billion for

the day -- the biggest via reverse repos since Jan. 18. 

     The seven-day repo average was last at 2.7774%, lower than Thursday's

average of 2.9109%. The overnight repo average was at 2.6569%, also lower than

Thursday's 2.6925%.

     The yield on benchmark 10-year China government bonds was last at 3.5876%,

down from the previous close of 3.5911%, according to Wind, a financial data

provider. 

     Stocks were down, led lower by the steel, coal and non-ferrous metals

sectors. The benchmark Shanghai Composite Index was 0.33% lower at 3,360.30.

Hong Kong's Hang Seng Index was 0.63% lower at 27,602.21.

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: vince.morkri@marketnews.com

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