WRAPUP 1-China stocks, yuan fall after quake, reserve hike

** China stocks down over 2 percent after Sichuan earthquake

** Yuan falls versus dollar, money market rates edge up, due also to reserve hike

** Monetary tightening to have longer-term impact than quake

By Lu Jianxin

SHANGHAI, May 13 (Reuters) - China's stocks fell in volatile trade, the yuan slipped against the dollar and borrowing costs on China's money market edged higher on Tuesday after a strong earthquake on Monday in the southwestern province of Sichuan, where the death toll neared 10,000.

The markets were also assessing the impact of a hike in banks' reserve requirement ratios by the central People's Bank of China, the fourth so far this year, in response to a rebound in consumer price inflation that remains near 12-year highs.

"Market conditions have become very uncertain and volatility is expected in coming weeks as investors evaluate all these factors," said economist Jin Dehuan at Shanghai Securities and Futures Institute.

"Overall, the impact of the earthquake on the markets should be temporary, while the monetary tightening stance should have much longer-term consequences," he said.

The central bank announced after Monday's market close that it would raise banks' reserve requirement ratios by 0.5 percentage point, bringing the rate for large banks to a record 16.5 percent, as it seeks to keep inflation under control.