EM ASIA FX-Asian currencies firm on China-U.S. trade hopes; peso in focus

(Adds text, updates prices)

Nov 15 (Reuters) - Asian currencies firmed on Thursday on

news that China has delivered a written response to U.S. trade

demands, raising hopes the two sides will begin negotiations to

bring an end to their trade war.

The Korean won led gainers after Reuters reported

China had responded to U.S. demands for wide-ranging trade

reforms, citing three U.S. government sources.

The sources gave no further details on the content of the

response, and it was unclear if it contained concessions that

would satisfy U.S. President Donald Trump's demands for change.

But global investors have been heartened in recent days that the

two sides have at least resumed informal discussions at various

levels.

"It appears China is more willing to consider issues raised

by the U.S. than in the past," said Chang Wei Liang, FX

strategist at Mizuho Bank.

Chang said investor confidence was also bolstered after

British Prime Minister Theresa May won the backing of her senior

ministers for a draft European Union divorce deal on Wednesday,

though she now faces the much more perilous struggle of getting

parliament to approve it.

The positive sentiment was also aided by a softer greenback,

as the dollar index reacted to rallies in the euro and

sterling, which together constitute around 70 percent of the

weight in the index.

The Philippine peso and the Indian rupee

gained as much as 0.4 percent each, while the Indonesian rupiah

strengthened as much as 0.3 percent.

Both the peso and the rupee rose for a third successive

session.

The Chinese yuan gained as much as 0.2 percent

while the Malaysian ringgit edged up 0.1 percent.

Currency markets were awaiting central bank policy decisions

later in the day in Indonesia (0700 GMT) and the Philippines

(0800 GMT).

Indonesia's central bank is likely to hold its benchmark

interest rate, a Reuters poll showed, though some analysts

expect December to bring this year's sixth rate hike.

PHILIPPINE PESO

In a Reuters poll, analysts were nearly evenly split on

whether the Bangko Sentral ng Pilipinas will raise interest

rates for the fifth time this year to tackle stubbornly high

inflation, after the economy grew at its slowest annual pace in

more than three years in the third quarter.

"Although external stability seems to be improving with

falling bond yields and peso rebounding alongside other

beaten-down currencies, pressure from tightening global

liquidity condition may return given its large (and widening)

trade deficit," said Mizuho Bank analysts in a note.

THAI BAHT

Thailand's central bank held its benchmark interest rate

steady on Wednesday as expected, but a widening split on the

decision-making committee bolstered views that next month it

could tighten policy for the first time in more than seven

years.

"The 4-3 vote and comment that 'the need for accommodative

monetary policy would be gradually reduced' seem not enough to

take up rates, as a minority in the market had expected a hike.

USD/THB went up as a response, reflecting market focusing more

on the decision itself," said Frances Cheung, head of macro at

Westpac.

"However, the decision is unlikely to have a long-lasting

impact on the Thai baht, which should stay resilient supported

by external surplus."

The following table shows rates for Asian currencies against

the dollar at 0613 GMT.

CURRENCIES VS U.S. DOLLAR

Currency Latest bid Previous day Pct Move

Japan yen 113.520 113.61 +0.08

Sing dlr 1.376 1.3789 +0.23

Taiwan dlr 30.861 30.932 +0.23

Korean won 1129.800 1134.3 +0.40

Baht 32.890 32.985 +0.29

Peso 52.850 53.09 +0.44

Rupiah 14765.000 14785 +0.14

Rupee 72.130 72.31 +0.24

Ringgit 4.189 4.1945 +0.13

Yuan 6.940 6.9500 +0.15

Change so far in 2018

Currency Latest bid End 2017 Pct Move

Japan yen 113.520 112.67 -0.75

Sing dlr 1.376 1.3373 -2.80

Taiwan dlr 30.861 29.848 -3.28

Korean won 1129.800 1070.50 -5.25

Baht 32.890 32.58 -0.94

Peso 52.850 49.93 -5.53

Rupiah 14765.000 13565 -8.13

Rupee 72.130 63.87 -11.45

Ringgit 4.189 4.0440 -3.46

Yuan 6.940 6.5069 -6.23

(Reporting by Aby Jose Koilparambil in Bengaluru; Additional

reporting by Devika Syamnath in Bengaluru; Editing by Kim

Coghill)