MARKET TALK: Resources To Benefit From Yuan Rise -Trader

22nd Jun 2010 02:50

0149 GMT [Dow Jones] Resources stocks likely the strongest beneficiaries of further yuan appreciation today, says Southern Cross Equities Director Charlie Aitken. "China has embarked on a slow and steady appreciation of the yuan," says Aitken. "I think in a few months time it will be 5.0% higher and I think it's positive for resources sentiment in the short term. You can see that the moment the yuan moves, up go BHP (BHP.AU) and Rio (RIO.AU), as well as the U.S. mining and steel stocks overnight. I'm sticking with a pro-China stance in the short-term and if we get any sign of compromise on the (Australian) resource super profits tax, that will drive the next leg of resources strength." BHP last up 0.1% at A$39.95. Rio (RIO.AU) up 0.3% at A$72.56. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 21, 2010 21:50 ET (01:50 GMT)