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EM ASIA FX-Asian units fall on US tariffs, recover on hopes tensions can ease

(Adds analyst comments, price moves and graphic)

By Patturaja Murugaboopathy

Sept 18 (Reuters) - Most emerging Asian currencies fell

early on Tuesday on news the United States was imposing more

tariffs on imports from China, but some recovered as Beijing did

not quickly announce retaliatory moves.

U.S. President Donald Trump said on Monday that he will

impose 10 percent U.S. tariffs on about $200 billion worth of

Chinese imports and warned he would pursue more tariffs if China

retaliates.

Up until now, the United States and China have applied

tariffs to $50 billion of each other's goods.

As of 0600 GMT Tuesday, the Chinese government had not

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issued a statement on the U.S. move.

But on Tuesday morning, China released comments by Commerce

Minister Zhong Shan on Monday to foreign investors that "there

was no winner in a trade war and that cooperation was the only

correct choice".

The comments provided some lift to China's yuan

and other regional currencies.

The yuan, which fell as much as 0.35 percent early on

Tuesday, trimmed its losses to just 0.1 percent.

Traders said the renewed Sino-U.S. trade tension piled

pressure on the yuan, but market participants refrained from

aggressively testing lows for fear the authorities may quickly

step in.

The minister's remarks are "supporting Asian currencies'

sentiment on hopes that negotiations can proceed from here,"

said Chang Wei Liang, FX strategist at Mizuho Bank.

The Thai baht, Singapore dollar and the

South Korean won gained on the day, taking cues from

the rebound in the yuan.

Thailand, Singapore and South Korea form a major part of

China's supply chain and their currencies are the most affected

if trade tensions escalate between the United States and China.

The Indonesian rupiah led the regional decliners on

the day, shedding more than 0.3 percent.

Saktiandi Supaat, head of FX research at Maybank, said the

central bank intervention in the rupiah and bond markets and

"increasing speculation that BI (Bank Indonesia) could act again

by hiking its policy rate through an out-of-cycle meeting"

should help the currency.

A Bank Indonesia deputy governor said on Tuesday the central

bank will intervene in the market in a "measured manner" to

maintain rupiah stability.

With a fall of 9.1 percent, the rupiah is the second biggest

loser in Asia this year, after the Indian rupee

Declines in the crude oil prices propped up the Indian

rupee. India is a major oil importer and lesser oil prices tend

to reduce the external deficits, strengthening the rupee.

"Focus is less on the EM stress points and shifted towards

the trade war so the rupee is likely to be less hurt vs. other

regional FX," said Maybank's Supaat.

The following table shows rates for Asian currencies against

the dollar at 0540 GMT.

CURRENCIES VS U.S. DOLLAR

Change as of 0540

GMT

Currency Latest Previous Pct

bid day Move

Japan yen 111.950 111.83 -0.11

Sing dlr 1.371 1.3717 +0.05

Taiwan dlr 30.807 30.805 -0.01

Korean won 1125.90 1126.6 +0.06

0

Baht 32.580 32.63 +0.15

Peso 54.140 54.11 -0.06

Rupiah 14925.0 14870 -0.37

00

Rupee 72.465 72.51 +0.06

Ringgit 4.144 4.137 -0.17

Yuan 6.864 6.8553 -0.12

Change so far in

2018

Currency Latest End 2017 Pct

bid Move

Japan yen 111.950 112.67 +0.64

Sing dlr 1.371 1.3373 -2.46

Taiwan dlr 30.807 29.848 -3.11

Korean won 1125.90 1070.50 -4.92

0

Baht 32.580 32.58 +0.00

Peso 54.140 49.93 -7.78

Rupiah 14925.0 13565 -9.11

00

Rupee 72.465 63.87 -11.8

6

Ringgit 4.144 4.0440 -2.41

Yuan 6.864 6.5069 -5.20

(Reporting by Patturaja Murugaboopathy in Bengaluru; Editing by

Richard Borsuk)