MNI CHINA MARKETS: Yuan Weaker; Rates Down; Stocks Rise

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

the People's Bank of China set a weaker daily fixing. 

     The yuan was last at 6.6368 against the U.S. unit, compared with the

official closing price of 6.6300 on Monday. 

     The PBOC set the yuan central parity rate against the U.S. dollar at 6.6356

on Tuesday, weaker than Monday's 6.6271.

     Money market rates fell Tuesday morning after the PBOC injected CNY10

billion in liquidity via open-market operations. The seven-day repo average was

last at 2.7781% on Tuesday, lower than Monday's average of 2.8973%. The

overnight repo average was at 2.7878%, lower than Monday's 2.8061%.

     The yield on benchmark 10-year China government bonds was last at 3.9650%,

up from the previous close of 3.9600%, according to Wind, a financial data

provider. 

     Stocks were up, led higher by the furniture-making sector. The benchmark

Shanghai Composite Index was last up 0.52% at 3,409.92. Hong Kong's Hang Seng

Index was 0.89% higher at 29,519.52.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@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$]