Chinese stock markets rallied past the 5000 benchmark reading for the first time as speculation continues to pour into the world’s fastest growing economy.

Ten years ago, everyone was worried about Asian contagion and now ten years later, that concern has turned to US contagion.

For the fourth time since the first quarter, the People’s Bank of China raised lending rates in the country in attempts to curb inflationary pressures of an overheated economy.

The Chinese yuan gained against the US dollar and the Euro while losing against the British pound in the overnight session as stock markets in Asia corrected from the credit debacle last week.

The Chinese yuan gained against the US dollar and British pound, while dropping against the Euro, in a volatility filled session.

The Chinese yuan declined the most in a year as continued losses on US subprime concerns rocked currency markets in the overnight session.

The Chinese yuan pulled back significantly against the US dollar, while making further ground against the euro and British pound as markets in Asia were hammered following losses in major US markets the day before.

The Chinese yuan pulled back against the US dollar even as equity markets moved higher on the day.

Consumer prices in the world’s fastest growing economy rose to the highest level in 10 years.

Appreciating during the session, the Chinese yuan was boosted by speculation that Chinese officials will be more flexible when it comes to the currently rigid exchange rate regime.