CHINA MARKETS: Yuan Stronger; Rates Down; Stocks Rise

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

though the People's Bank of China set a weaker daily fixing. 

     The yuan was last at 6.5782 against the U.S. unit, compared with the

official closing price of 6.5888 on Thursday. 

     The PBOC set the yuan central parity rate against the U.S. dollar at 6.5866

on Friday, weaker than Thursday's 6.5808. It was the first weaker fixing after

three straight days of stronger fixings.

     Money market rates fell Friday morning after the PBOC injected CNY394

billion in liquidity via open-market operations. The seven-day repo average was

last at 2.8002% on Friday, lower than Thursday's average of 2.8299%. The

overnight repo average was at 2.5541%, lower than Thursday's 2.6014%.

     The yield on benchmark 10-year China government bonds was last at 3.5910%,

down from the previous close of 3.6318%, according to Wind, a financial data

provider. 

     Stocks were up, led higher by the financial trust sector. The benchmark

Shanghai Composite Index was last up 0.07% at 3,388.58. Hong Kong's Hang Seng

Index was 0.10% lower at 28,431.48. 

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