China's yuan was moderately lower against the U.S. dollar late Tuesday, after the U.S. dollar strengthened further against the euro overnight because of continued concerns over European sovereign credit.

But the yuan drew some support from banks and businesses that believe the currency is at an attractive level before it resumes its appreciation trend against the dollar shortly.

On the over-the-counter market, the dollar was at CNY6.6670 around 0930 GMT, up from Monday's close of CNY6.6606. It traded between CNY6.6625 and CNY6.6700.

The People's Bank of China set the dollar-yuan central parity rate at 6.6762, the highest fixing since Nov. 3 when it was set at 6.6818, and up from 6.6700 Monday.

That came after the euro fell below $1.31 for the first time since Sept. 21 in New York trade Monday due to concerns over a deterioration in the European sovereign debt crisis and despite the approval of an EUR85 billion rescue package for Ireland by European financial leaders on Sunday.

At 0930 GMT, the euro was at $1.3009, down from $1.3120 in late New York trade Monday.

'The general market trend over the past few sessions has been to sell dollars to lock in the attractive exchange rate, but the dollar-yuan won't fall too much because worries about euro-zone debt will keep the dollar strong relative to other major currencies,' said a Guangdong-based foreign bank trader.

Another trader said the market is also bracing for a potential dollar short squeeze as businesses' routine month-end settlement needs may create a glut of dollar bids, catching banks' trading desks short.

'One must be cautious for a potential dollar short squeeze later in the session as it's the end of the month,' said a Shanghai-based trader at an European bank.

But she said yuan demand dominated the market in the past two sessions.

'For many, the dollar above CNY6.6700 is a good level to sell,' she said.

Offshore, the one-year nondeliverable forward was at 6.5433/6.5483, up from 6.5400/6.5470 late Monday.

Hong Kong shares ended higher Wednesday due to bargain hunting in Chinese financial and property firms after data showed manufacturing activity in China expanded at a faster pace in November than in the previous month.

The blue-chip Hang Seng Index rose 241.81 points, or 1.1%, to 23,249.80 after trading between 22,842.12 and 23,325.79.

Market volume totaled HK$89.02 billion, down from HK$101.01 billion Tuesday.

Analysts said that despite the uncertainty about further tightening measures in China, they expect the city's benchmark index to find support at the 23,000 level in December due to year-end window-dressing activities by fund managers.

China's Purchasing Managers Index rose to 55.2 in November from 54.7 in October, the China Federation of Logistics and Purchasing, which issues the data with the National Bureau of Statistics, said in a statement. It was the index's highest level since April.

The HSBC China Manufacturing Purchasing Managers Index, another measure of nationwide manufacturing activity, rose to 55.3 in November from 54.8 in October, HSBC Holdings PLC said, the highest reading since March.

Readings above 50 indicate an expansion in manufacturing activity.

'The latest economic indicators show demand remains strong in China but inflation data scheduled to be reported in mid-December may surprise on the upside, prompting further monetary tightening measures from Beijing,' said Edward Huang, a strategist at Haitong Securities.

Chinese property developers led the recovery in Hong Kong. China Overseas Land rose 2.9% to HK$15.36 after falling 3.9% over the past four sessions. China Resources Land rose 1.9% to HK$14.18 after falling 1.4% Tuesday.

Chinese lender Bank of China rose 1.4% to HK$14.49 following a 0.5% decline Tuesday, and Bank of Communications rose 1.4% to HK$8.22 after falling 0.9% the previous day.

Property-to-ports conglomerate Wharf (Holdings) rose 7.1% to HK$55.90 after it said Tuesday it bought two parcels of land in Changzhou, in eastern China's Jiangsu province, for CNY1.12 billion at a land auction.

'As the two sites are connected and it's aiming at building high-end residential projects, I expect the gross margin to be attractive,' said Prudential Brokerage associate director Alvin Cheung.

Hutchison Whampoa rebounded 4.2% to HK$81.00 after falling 1.5% Tuesday. The conglomerate also said it agreed to buy C$345.5 million-worth of Husky Energy shares to maintain its stake in the oil producer and refiner

Hong Kong shares ended higher Thursday, tracking gains on Wall Street overnight following a more positive economic outlook for the U.S. and European markets and plans by the International Monetary Fund to double lending capacity in the next few months.

The blue-chip Hang Seng Index rose 199.00 points, or 0.9%, to 23,449.00 after rising as high as 23,575.38 intraday. Market volume for the session totaled HK$93.03 billion, up from HK$89.02 billion Wednesday.

Analysts said they expect the index to rise as high as 24,500 points by the end of January, as year-end window-dressing activities and more clarity on whether China will introduce further tightening measures will help lift investor interest.

'The labor market and the retail sector in the U.S. are doing better than expected,' said Jasper Tsang, research director of CSC Securities.

Data on Wednesday showed the U.S. added 93,000 private-sector jobs in November--the 10th consecutive month of gains and the largest one-month gain in three years--which helped boost U.S. markets and lead Hong Kong shares higher Thursday.

Tsang added that plans by the International Monetary Fund to boost lending capacity to better deal with the European sovereign debt crisis has also helped allay investors' concerns.

The IMF expects to double its lending capacity to US$450 billion over the next few months, according to IMF officials and documents.

The Dow Jones Industrial Average rose 2.3% Wednesday to 11,255.78, its largest gain since Sept. 1 and its sixth biggest one-day jump this year.

The rally, which was boosted by the IMF's plans, effectively wiped out November's sluggish performance, which saw the Dow finish 1% lower.

Hong Kong investors were also encouraged by the recent strength in China's manufacturing activity, although an analyst said the indicators could be interpreted both ways.

'The indicators can be a good sign for the stock market as it can mean that the fundamentals are strong enough to support the pressure of inflation and new monetary policies. But on the other hand, it can prompt the Chinese government to introduce further tightening measures,' said Ben Kwong, chief operating officer at KGI Asia.

China's Purchasing Managers Index rose to 55.2 in November from 54.7 in October, the China Federation of Logistics and Purchasing said earlier this week. It was the index's highest level since April.

Many Chinese energy companies were among the day's biggest gainers, after a surge in crude prices in the U.S. overnight. Offshore oil producer Cnooc jumped 3.2% to HK$17.54, while PetroChina rose 2.4% to HK$9.97.

Nymex crude for January delivery rose 3.1% to US$86.75 per barrel on Wednesday, its biggest one-day dollar gain since July 22.

However, China Shenhua slumped 5.1% to HK$31.60 and China Coal dropped 4.4% to HK$12.04, following reports that Beijing has ordered a price freeze on coal deliveries next year as part of efforts to contain inflation.

China's coal miners are required to keep prices for coal excavated in 2011 unchanged from this year's contracts, the National Development and Reform Commission's pricing department director was cited as saying Wednesday in a report by the state-controlled Xinhua news agency

First Ghana oil production to be live on TV December 15

On Wednesday December 15, 2010, commercial production of oil will begin at Ghana’s Jubilee oil field and it will be shown live on Ghana TV.

A press release from Tullow Oil issued Monday November 29, 2010 and copied to ghanabusinessnews.com says the event will be celebrated at a ceremony to be hosted by president John Evans Atta Mills.

The Jubilee field was discovered in June 2007 and the first oil will be the culmination of three and a half years of work by the Ghana government and the Jubilee partners. The partners are Tullow Oil plc (Tullow), Anadarko Petroleum, Kosmos Energy, Ghana National Petroleum Corporation, Sabre Oil and Gas and E.O. Group.

According to the release, in preparation for the first oil, oil was produced to the FPSO Sunday November 28, 2010 and is being used to commission processing systems and facilities ahead of First Oil.

Immediately after First Oil, it says, the field will be capable of flowing up to 55,000 barrels of oil per day but as new wells are completed over a three to six month period, production will increase to 120,000 barrels per day.

The blue-chip Hang Seng Index fell 82.83 points, or 0.4%, to 23,237.69 after trading between 23,213.71 and 23,612.25.

Market volume fell to HK$75.94 billion from HK$85.19 billion Friday.

Analysts said they expect the index to trade between 22,800 and 24,000 points the rest of the month as investors weigh the risks in the U.S., Chinese and European markets.

'The market is still in consolidation mode for the time being. Worries about further tightening measures from China are keeping stocks under pressure,' said Ben Kwong, associate director for KGI Asia.

He said investors were awaiting China's Central Economic Work Conference, an economic policy meeting that usually takes place in early December, for further insight into the country's economic policy.

Investors in mainland China and Hong Kong are also awaiting the release of China's November inflation data on Dec. 13.

Jackson Wong, investment manager at Tanrich Securities, said it was unclear why the market turned lower in the last minutes of trade. 'The market must not have a very optimistic view about the U.S. trading session to come,' he said.

Comments by Federal Reserve Chairman Ben Bernanke in an interview with CBS's '60 Minutes' that aired Monday morning during Asia time were met with a mixed reaction from investors.

His statement that the U.S. economy isn't likely to fall back into recession spurred local export companies such as Li & Fung, which rose 1.2% to HK$46.15. But CBS News on Friday said that in its pre-recorded interview Bernanke didn't rule out expanding the Fed's asset-purchase program.

Banks fell with BOC Hong Kong dropping 4.2% to HK$26.50, Bank of China falling 2.6% to HK$4.12 and China Construction Bank sliding 1.8% to HK$6.97.

The city's two largest developers also ended lower. Cheung Kong dropped 1.4% to HK$115.00 and Sun Hung Kai Properties fell 1.0% to HK$129.50.

Macau casino operators all ended in the red. Sands China fell the most, dropping 5.0% to HK$16.32. The decline followed a 1.3% drop Friday after the Macau government rejected the company's application for rights to a land plot in Macau's fast-growing Cotai area.

Credit Suisse analyst Gabriel Chan wrote in a report that though the impact on earnings projections was limited, the news would 'inevitably hurt sentiment.' He also said the government's decision raises 'a lot of questions, particularly over the reasons for the denial