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EM ASIA FX-China's yuan weakens as trade war fears resurface, most other Asian FX gain

* Sept trade data reignites rising trade tension fears

* Singapore dollar up after c.bank tightens policy

* Falling oil prices supports rupee to 1st weekly gain in 6

(Adds text, updates prices)

By Nikhil Nainan

Oct 12 (Reuters) - China's yuan weakened on Friday as

surprisingly strong export figures fed fears over its trade war

with the United States, while most other Asian currencies firmed

on Friday after being battered earlier in the week by fallout

from a global equity market sell-off.

U.S. Treasury bond prices rose overnight as investors flocked

to safety, pushing down yields. The falling yields, and a

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smaller than expected rise in U.S. consumer prices helped push

the dollar near its weakest level this month against a

basket of six major currencies, and gave emerging market

currencies some relief.

The Indian rupee, Asia's worst performer this year,

strengthened 0.7 percent to 73.608, coming just a day after it

set yet another record low against the dollar.

Indian inflation figures out later are expected to show

consumer prices rose 4 percent in September, up from Augusts'

3.69 rise, and bang on the central bank's medium-term target of

4 percent.

The rupee was set to snap six weeks of straight losses,

helped by oil prices coming off recent highs and looking on

course to shed 4 percent this week.

But the currency remains hampered by India's large current

account deficit, and the central bank's apparent hesitancy

raising interest rates.

South Korea's won gained over 1.3 percent to

1,130.2 per dollar.

The unemployment rate in the country fell in September,

after setting an eight-year high in August.

SEPTEMBER EXPORT GROWTH - TO REVIVE TRADE WAR ANXIETY?

The yuan was trading 0.1 percent weaker against

the dollar at 6.896, halting three sessions of gains, as

unexpectedly strong China exports fueled worries that an

escalation in the Sino-U.S. trade war would continue.

September exports rose 14.5 percent from a year earlier,

Chinese customs data showed. That blew past forecasts for an 8.9

percent increase in a Reuters poll and was well above August's

9.8 percent gain.

It comes a day after U.S. President Donald Trump warned that

there was much more he could do that would hurt China's economy.

The data might offset reports on Thursday that the U.S.

Treasury staff had not labelled China as a currency manipulator

in its recommendation for the department's semi-annual report on

foreign exchange rate practices.

Still,, the yuan appears set to weaken against the dollar

for a second week, largely as a result of the sharp decline

suffered at the start of the week in reaction to the central

bank cutting the amount of cash that banks must hold as

reserves.

SINGAPORE DOLLAR

The Monetary Authority of Singapore (MAS) tightened monetary

policy for the second time this year, increasing the S$NEER

slope from 0.5 percent to 1 percent, supporting a 0.2 percent

gain in the city-state's dollar to 1.374 per U.S. dollar.

Analysts viewed today's decision as hawkish as the MAS

downplayed trade frictions and was upbeat about economic

activity. The MAS expects inflation pressures from higher oil

and food prices as well as an improving labour market.

"MAS is not yet done with policy normalisation, and a

further increase in the S$NEER is likely if the economy evolves

as the MAS expects,” said Khoon Goh, Head of Asean Research at

ANZ.

Mizuho bank analysts on the other hand, cautioned that

downside risk cannot be ignored and "the real issue is whether

the evolving US-China trade spat and/or global liquidity mop up

inadvertently result in an abrupt buckle in economic activity."

CURRENCIES VS U.S. DOLLAR

Change on the day at 0505 GMT

Currency Latest bid Previous day Pct Move

Japan yen 112.320 112.16 -0.14

Sing dlr 1.374 1.3764 +0.20

Taiwan dlr 30.870 31.105 +0.76

Korean won 1130.200 1144.4 +1.26

Baht 32.670 32.76 +0.28

Peso 54.080 54.06 -0.04

Rupiah 15190.000 15230 +0.26

Rupee 73.608 74.12 +0.70

Ringgit 4.152 4.158 +0.14

Yuan 6.896 6.8888 -0.10

Change so far in 2018

Currency Latest bid End 2017 Pct Move

Japan yen 112.320 112.67 +0.31

Sing dlr 1.374 1.3373 -2.65

Taiwan dlr 30.870 29.848 -3.31

Korean won 1130.200 1070.50 -5.28

Baht 32.670 32.58 -0.28

Peso 54.080 49.977 -7.59

Rupiah 15190.000 13565 -10.70

Rupee 73.608 63.87 -13.23

Ringgit 4.152 4.0440 -2.60

Yuan 6.896 6.5069 -5.64

(Reporting by Nikhil Kurian Nainan, additional reporting by

Sumeet Gaikwad in Bengaluru and Vatsal Srivastava; Editing by

Simon Cameron-Moore)