EM ASIA FX-Asian currencies draw relief from planned U.S.-China trade talks, but yuan eases

* Uncertain outcome of trade talks keeps yuan under

* Indian rupee appreciates sharply, but on track for weekly

loss

* Graphic: EM Asia FX rates in 2018 https://tmsnrt.rs/2CPp4pY

(Adds text, updates prices)

By Nikhil Nainan

Sept 14 (Reuters) - Most Asian currencies were buoyed on

Friday by the prospect of U.S.-China trade talks, though a tweet

by U.S. President Donald Trump reduced hopes for a breakthrough,

pegging back the yuan.

Asian currencies had drawn support on Thursday from China

welcoming a U.S. invitation to trade talks aimed at stopping a

tariff war, but Trump tempered that relief by tweeting that the

U.S. is "under no pressure to make a deal with China."

China's yuan weakened 0.2 percent to 6.852 against

the dollar, on low expectations that the planned talks will lead

to any major breakthrough. The yuan was left on track a slight

weekly loss, its third on the trot.

"Before the U.S. and China reach a trade deal, uncertainty

remains intact," said Qi Gao, an FX Strategist with Scotiabank.

"Keep watching the headlines on U.S.-China trade talks."

The smaller than expected rise in the U.S. consumer price

index (CPI) also held the dollar back.

Sentiment toward emerging market currencies was given a

broad boost by the Turkish central bank's decision to raise its

benchmark rate by a hefty 625 basis points to 24.0 percent on

Thursday.

In Thailand, reports that a general election could be held

in May 2019 supported strong gains in equity and currency

markets which extended into the current session.

The Thai baht gained 0.3 percent to 32.55 per

dollar, and is on track to gain this week.

Indonesia's rupiah, one of the region's worst

performers this year, picked up marginally against the dollar at

14,825, after the country's deputy central bank governor

reiterated the bank's hawkish stance.

However, the Philippine peso slipped 0.1 percent to

54.052 per dollar, near its lowest level in over a decade.

"With negativity already priced into India and Indonesia, we

reiterate that the Philippines may continue to figure

prominently on investors' radar screens," OCBC Bank said in a

note.

"We continue to be concerned about the constant

deterioration of the portfolio flow environment in the

Philippines," the bank added.

INDIAN RUPEE

The rupee has had a volatile week, touching

multiple record lows against the dollar, yet appreciating

sharply on Wednesday, as well as in the current session

following a market holiday the day before.

The rupee strengthened 0.6 percent to 71.788, though many

expected the rupee to surge to past the 73 level this week.

An overnight slide in oil prices provided some extra relief

for the currency. India imports about 80 percent of its crude

oil needs.

Earlier in the week, rupee sentiment was buoyed by talk of

possible fiscal and monetary steps.

The rupee wasn't helped, however by August retail inflation

data, released on Wednesday, that came in lower than expected,

reducing expectations for a rate hike

The currency is the worst performer in the region, and

despite sharp gains towards the end of the week, it is still set

for a slight weekly loss.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0521 GMT

Currency Latest bid Previous day Pct Move

Japan yen 111.840 111.92 +0.07

Sing dlr 1.370 1.3700 +0.04

Taiwan dlr 30.791 30.805 +0.05

Korean won 1118.500 1122.4 +0.35

Baht 32.550 32.64 +0.28

Peso 54.052 54 -0.10

Rupiah 14825.000 14835 +0.07

Rupee 71.788 72.19 +0.55

Ringgit 4.138 4.143 +0.12

Yuan 6.852 6.8363 -0.23

Change so far in 2018

Currency Latest bid End 2017 Pct Move

Japan yen 111.840 112.67 +0.74

Sing dlr 1.370 1.3373 -2.35

Taiwan dlr 30.791 29.848 -3.06

Korean won 1118.500 1070.50 -4.29

Baht 32.550 32.58 +0.09

Peso 54.052 49.977 -7.54

Rupiah 14825.000 13565 -8.50

Rupee 71.788 63.87 -11.03

Ringgit 4.138 4.0440 -2.27

Yuan 6.852 6.5069 -5.04

(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by

Simon Cameron-Moore)