CHINA MARKETS: Yuan Stronger; Rates Mixed; Stocks Rise

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

the People's Bank of China set a stronger daily fixing and the U.S. dollar

continued to weaken.

     The yuan was last at 6.6081 against the U.S. unit, 0.36% stronger than the

official closing price of 6.6323 on Monday. 

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

U.S. dollar at 6.6293 Tuesday, stronger than Monday's 6.6353. It was the

strongest fixing since Aug. 19 last year, when it was 6.6211. The PBOC has set

the fixing stronger for two straight trading days, and today was also the first

day since July 6, 2015, that the year-on-year growth rate of the yuan against

the dollar was in positive territory.

     Money market rates were mixed on Tuesday after the PBOC injected a net

CNY10 billion via open-market operations for the day.

     The seven-day repo average was last at 2.7482%, much lower than Monday's

average of 2.8961%. The overnight repo average was at 2.9035%, higher than

Monday's 2.8700%

     The yield on benchmark 10-year China government bonds was last at 3.6298%,

up from the previous close of 3.6204%, according to Wind, a financial data

provider. 

     Stocks were up, led higher by the steel and banking sectors. The benchmark

Shanghai Composite Index was 0.11% higher at 3,366.49. Hong Kong's Hang Seng

Index was 0.41% lower at 27,46.13. 

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

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

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