CHINA MARKETS: Yuan Stronger; Rates Down; Stocks Rise

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

the People's Bank of China set a much stronger daily fixing. 

     The yuan was last at 6.5542 against the U.S. unit, compared with the

official closing price of 6.5679 on Friday. As of 11:20 am today, the yuan has

appreciated 5.77% against the U.S. dollar so far this year.

     The PBOC set the yuan central parity rate against the U.S. dollar at 6.5482

on Monday, much stronger than Friday's 6.5909. Today's fixing was the highest

since June 23 last year and the biggest daily rise since Aug. 10.

     Money market rates fell Monday morning after the PBOC drained a net of

CNY140 billion via open-market operations. The seven-day repo average was last

at 2.8002% Monday, lower than Friday's average of 2.9408%. The overnight repo

average was at 2.6993%, lower than Friday's 2.7930%.

     The yield on benchmark 10-year China government bonds was last at 3.6048%,

down from the previous close of 3.6074%, according to Wind, a financial data

provider. 

     Stocks were up slightly, led higher by the computer and storage sectors.

The benchmark Shanghai Composite Index was last up 0.07% at 3,369.40. Hong

Kong's Hang Seng Index was 0.46% lower at 27,823.56.

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

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com

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