Yemeni state TV showed the rally in support of President Saleh Tens of thousands of people are attending rival mass rallies in Yemen's capital Sanaa, a week after some 50 people were shot dead at a protest.
Protesters predicted their biggest rally yet to demand the resignation of President Ali Abdullah Saleh.Mr Saleh told a rally of his own supporters he was ready to hand over power, but only to "safe hands".
Soldiers fired in the air to hold back Saleh loyalists when they tried to march on the opposition rally.
In his speech, the president in office for more than three decades condemned bloodshed but also urged his supporters to "stand firm".
He earlier denied that government forces had played any part in the shooting of demonstrators last week.
Confrontation fears Both the government and opposition have set up checkpoints in Sanaa and the streets are full of armed men.
There is real fear of a new confrontation, a BBC correspondent reports from the city.
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His speech on Friday was rather vague. He has offered to step down before, so it still looks like a stalemate.
The Western concern is that any chaos could be exploited by al-Qaeda, which has a presence in Yemen.
Flights out of Sanaa are full as many embassies evacuate their employees.
The opposition are calling the new rally a Friday of Departure but one student activist told me that Friday of Uncertainty would be more appropriate.
Analysis
Mr Saleh is clearly running out of things he can offer the opposition but he still has plenty of military might and he has vowed to protect himself.His speech on Friday was rather vague. He has offered to step down before, so it still looks like a stalemate.
The Western concern is that any chaos could be exploited by al-Qaeda, which has a presence in Yemen.
Flights out of Sanaa are full as many embassies evacuate their employees.
The opposition are calling the new rally a Friday of Departure but one student activist told me that Friday of Uncertainty would be more appropriate.
According to an AFP news agency report, Friday's crowds number hundreds of thousands.
President Saleh, dressed in a smart suit and sunglasses, took the microphone before a huge crowd."We don't want power but we need to hand power over to safe hands, not to sick, resentful or corrupt hands," he said.
"We are against firing a single bullet and when we give concessions, this is to ensure there is no bloodshed," he added.
"We will remain steadfast and challenge them with all power we have."
Some Saleh loyalists were carrying guns and waving traditional Yemeni daggers at Friday's rally, Reuters news agency reports.
Others rode motorbikes with large posters of Mr Saleh affixed to them, waving flags and playing patriotic music.
"No to chaos, yes to security and stability," banners read.
'This butcher' In another part of the city, on a square near the university, thousands of protesters gathered for an anti-Saleh demonstration.
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Middle East unrest: Yemen
- President Ali Abdullah Saleh in power since 1978
- Population 24.3m; land area 536,869 sq km
- The population has a median age of 17.9, and a literacy rate of 61%
- Youth unemployment is 15%
- Gross national income per head was $1,060 (£655) in 2009 (World Bank)
"I came here to get rid of this butcher because he killed our comrades," said student Abdullah Jabali, 33, who told Reuters he did not believe Mr Saleh's promises to stand down within a year.
Mahdi Mohammed, 36, a translator from Aden, said: "I just want this president and his family to leave peacefully, not to leave the country but to step down."On Wednesday, Yemen's parliament passed sweeping emergency laws giving the security forces far-reaching powers to detain suspects and prevent demonstrations.
Mr Saleh has said the unrest risks taking Yemen into civil war.
On Monday a senior general, Ali Mohsen al-Ahmar, defected to the protesters and sent troops loyal to him to guard demonstrators encamped in a square in Sanaa.
On Friday, President Saleh's media secretary, Ahmed al-Sufi, told Reuters that meetings had been held with the general.
"Ali Mohsen clarified why he did what he did, and requested assurances that nothing would happen against him," the media secretary said.
Other senior officials have also left Mr Saleh's side to go to the opposition.
Yemen is one of a number of countries in the region that have seen unrest since the presidents of Egypt and Tunisia were ousted in popular revolts.
The president also faces a separatist movement in the south, a branch of al-Qaeda and a periodic conflict with Shia tribes in the north.
http://www.bbc.co.uk/news/world-middle-east-12857700
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