Published at 03:19 (GMT) 19 Mar

US INDEX, USD/JPY Flows - China's He reminds:Treasuries purchase stabilise markets (PYJC2001)

"Gentle Reminder" from China? China's Commerce Ministry's He Ning says China's purchase of US Treasury securities have helped stabilise US financial system, even as tensions over CNY reval is Heating up. (Mr) He calls on US to work for steady trade and economic cooperation with China and avoid politicization and emotion over economic tensions. Channels of communication open for talks on trade issues, including CNY. Commerce Ministry not involved in "stress tests" for possible impact of CNY reval. On FX, good to watch for any moves by China on CNY, PBOC on rate hikes, with USD/JPY at 90.45-48 - though some focus on PM Hatoyama proposal for JPY redenomination - which may lead to stronger JPY - and not what MoF is looking for now, as MoF Kan, and even PM Hatoyama have now warned on FX action on any sharp JPY rise. Offers 90.50-60/90.80-91.00. Bids 90.00-20. USD INDEX at 80.262, -0.02%, support 80.000, eye 81.000 again. WL