CHINA MARKETS: Yuan Stronger; Rates Fall; Stocks Up

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

the People's Bank of China set a stronger daily fixing and foreign-exchange

sales in the market continued to increase as yuan appreciation expectations

climbed.

     The yuan was last at 6.6599 against the U.S. unit, 0.10% stronger than the

official closing price of 6.6668 on Friday. 

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

U.S. dollar at 6.6601 Monday, 0.06% stronger than Friday's 6.6642. Today's

fixing was the highest since Sept. 22 last year, when it was 6.6513. It was the

fifth straight trading day that the PBOC has set a higher fixing.  

     Money market rates were down on Monday. The seven-day repo average was last

at 2.8112%, lower than Friday's average of 2.8373%. The overnight repo average

was at 2.7331%, lower than Friday's 2.7632%.

     The yield on benchmark 10-year China government bonds was last at 3.5841%,

down from the previous close of 3.6162%, according to Wind, a financial data

provider. 

     Stocks rose, led higher by shares of technology companies. The benchmark

Shanghai Composite Index was up 0.43% at 3,222.48. Hong Kong's Hang Seng Index

was 1.18% higher at 27,201.17.

--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$]