GOOD NEWS FROM CHINA - ON TWO FRONTS

NYTIMES:

CURRENCY:

China’s currency rose steeply against the dollar this week, feeding speculation that Chinese authorities, yielding to international pressure and economic realities at home, were allowing their currency to appreciate more rapidly.

The currency, known as the yuan or renminbi, rose 0.9 percent this week — faster than over any week since China stopped pegging it to the dollar on July 21, 2005. Thursday, the yuan rose 0.37 percent, the largest one-day increase since the peg ended. On Friday, it rose 0.18 percent, to close at 7.3041 to the dollar in Shanghai trading.

HONG KONG:

Beijing will allow Hong Kong to directly elect its leader by 2017 and all its lawmakers by 2020, the territory's chief executive said Saturday.

Donald Tsang said the move was a ''most important step'' in the former British colony's political future.

• I LIKE THESE DEVELOPMENTS.

• I THINK THEY WILL HELP WORLD MARKETS NEXT WEEK - WHEN THEY MIGHT REALLY REALLY NEED IT.

• ESPECIALLY IF PAKISTAN TAKES ANOTHER TURN "SOUTH".