CHINA MARKETS: Yuan Stronger; Rates Mixed; Stocks Down

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

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

fell. 

     The yuan was last at 6.7314 against the U.S. unit, jumping 0.34% compared

with the official closing price of 6.7545 on Wednesday. The yuan rose as high as

6.7313 in interday trading, the strongest since Oct. 17, 2016, when it reached

6.7312. 

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

U.S. dollar at 6.7307 Thursday, much stronger than Wednesday's 6.7529. It was

the strongest fixing since Oct. 18, 2016, when it was 6.7303. Today's fixing

also marked the biggest daily rise in a month.

     The U.S dollar index fell 0.12% to 93.34 shortly before lunchtime in

Beijing. 

     Money market rates were mixed in the morning session on Thursday as

liquidity of short-term capital was still tight. The seven-day repo average was

last at 2.8145%, lower than Wednesday's average of 2.8405%. The overnight repo

average was at 2.7790%, higher than Wednesday's 2.7554%.

     The yield on benchmark 10-year China government bonds was last at 3.7767%,

down from the previous close of 3.7689%, according to Wind, a financial data

provider. 

     Stocks were down, led lower by the insurance and non-ferrous metal sectors.

The benchmark Shanghai Composite Index was last down 0.81% at 3,221.24. Hong

Kong's Hang Seng Index was 0.34% higher at 27,031.33.

--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$]