CHINA MARKETS: Yuan Stronger; Rates Mixed; Stocks Up

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

after the People's Bank of China set a stronger fixing for the day.

     The yuan was last at 6.5775 against the U.S. unit, stronger than the

official closing price of 6.5868 on Friday. 

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

U.S. dollar at 6.5839 Monday, stronger than Friday's 6.5866.

     Money market rates were mixed after the PBOC made zero injection or drain

via open-market operations for the day. The seven-day repo average was last at

2.8544%, higher than Friday's average of 2.8238%. The overnight repo average was

at 2.5613%, lower than Friday's 2.5442%.

     The yield on benchmark 10-year China government bonds was last at 3.6241%,

up from the previous close of 3.5987%, according to Wind, a financial data

provider. 

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

Shanghai Composite Index was 0.12% higher at 3,394.86. Hong Kong's Hang Seng

Index was 0.94% higher at 28,742.79.

--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$]