CHINA MARKETS: Yuan Strengthens; Rates Lower; Stocks Up

     BEIJING (MNI) - The yuan rose against the U.S. dollar on Thursday morning

even though the People's Bank of China set a weaker fixing for the day.

     The yuan was last at 6.6277 against the U.S. unit, stronger than the

official closing price of 6.6343 on Wednesday. 

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

U.S. dollar at 6.6325 Thursday, weaker than Wednesday's 6.6277. The PBOC has set

the fixing weaker for two straight trading days.

     Money market rates were lower. The seven-day repo average was last at

2.7871%, lower than Wednesday's average of 2.8037%. The overnight repo average

was at 2.6357%, also lower than Wednesday's 2.5990%.

     The yield on benchmark 10-year China government bonds was last at 3.8925%,

up from the previous close of 3.8800%, according to Wind, a financial data

provider. 

     Stocks rose, led up by shares of nuclear power companies in the morning

session. The benchmark Shanghai Composite Index was 0.04% higher at 3,416.77.

Hong Kong's Hang Seng Index was 0.85% higher at 29,150.89.

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

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

[TOPICS: M$A$$$,M$Q$$$,M$$FI$,MN$FI$,MN$FX$]