CHINA MARKETS: Yuan Stronger; Rates Down; Stocks Up

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

after the People's Bank of China set a stronger daily fixing and the dollar

weakened.

     The yuan was last at 6.6734 against the U.S. unit, 0.33% stronger than the

official closing price of 6.6955 on Wednesday. It was the yuan's biggest rise

since Aug. 9, when it appreciated 0.39% for the day. 

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

U.S. dollar at 6.6709 Thursday, 0.10% stronger than Wednesday's 6.6779.

     Money market rates were down on Thursday after the PBOC injected a net

CNY50 billion via open-market operations.

     The seven-day repo average was last at 2.7373% Thursday, lower than

Wednesday's average of 2.9132%. The overnight repo average was at 2.7807%, lower

than Wednesday's 2.8627%.

     The yield on benchmark 10-year China government bonds was last at 3.5824%,

down from the previous close of 3.5852%, according to Wind, a financial data

provider. 

     Stocks was up, led higher by the non-ferrous metals sector. The benchmark

Shanghai Composite Index was up 0.23% at 3,253.84. Hong Kong's Hang Seng Index

was flat  at 27,469.66.

--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$]