WRAPUP 2-China stocks rise, as do tempers, with fuel hike

* China's main stock index jumps 3 percent, refiners up

* Economists says inflation pressure will be muted

* Car owners angry, but Beijing aims subsidies at poor (Adds bullet points, links to graphics)

By Chen Aizhu and Simon Rabinovitch

BEIJING, June 20 (Reuters) - Chinese stocks soared, oil fell, then steadied and some motorists threw up their hands in despair on Friday after Beijing announced a rise in fuel prices which had not been expected until after the Olympics.

China raised retail gasoline and diesel prices by up to 18 percent on Thursday to rein in demand at the risk of stoking inflation which is within striking distance of 12-year highs. Economists however said inflationary pressures would be muted.

While neighbours from India to Indonesia had already bowed to the pressures of near $140 oil by scaling back subsidies and raising fuel prices, most analysts had expected Beijing to hold out until after the Olympics in August as policymakers focused on battling inflation and avoiding any hint of social unrest.

The higher resource prices will feed into inflation, but in a nation where consumers spend little on fuel products, the impact is expected to be relatively small. Most economists expect that an extra percentage point, or even less, will be added to consumer inflation over the rest of the year.

Nevertheless, the yuan rose against the dollar in offshore non-deliverable forwards <CNYNDFOR=>, as traders said the fuel price increase would prod Beijing to tighten monetary policy to tackle inflation.