EM ASIA FX-Most Asian currencies stronger on trade talks optimism, stimulus

(Adds text, updates prices)

By Patturaja Murugaboopathy

Feb 18 (Reuters) - Most Asian currencies strengthened

against the dollar on Monday on renewed hopes of progress in

U.S.-China trade talks and optimism that regional economies will

get a boost from central bank stimulus measures.

The United States and China resume talks in Washington this

week after they reported progress in five days of negotiations

in Beijing. U.S. President Donald Trump has said he may extend a

March 1 deadline for reaching a deal.

"The market had certainly been cheering the signs," said

Jingyi Pan, a Singapore-based market strategist at trading and

investments provider IG.

"Despite the lack of details post meeting, there is a

growing sense that a 60-day extension to the March 1 deadline

for further tariffs implementation could help to ease through

the difficulty in reaching common ground on contentious issues

such as intellectual property and technology transfers," he

said.

The Indonesian rupiah led regional gainers on the

day, followed by the South Korean won and China's

yuan.

The Thai baht rose 0.2 percent after its economy

grew at its best pace in six years in 2018, with the

fourth-quarter beating expectations on higher domestic demand

and record tourism arrivals.

Bucking the trend, the Indian rupee shed 0.27

percent on worries over India's trade deficit and higher crude

oil prices.

Regional assets were also helped by expectations that major

central banks will start to unwind their monetary tightening

policies this year. The sustained rise in U.S. interest rates

last year undermined Asian currencies and triggered portfolio

outflows from the region.

"Over the first six weeks of 2019, U.S. equities have seen a

drawdown of $43.6 billion. During the same period, EM Asia has

received $17.1 billion in equities and $3.3 billion in bond fund

flows," DBS Bank said in a report.

Minutes of the Federal Reserve's last policy meeting are due

on Wednesday and should provide more guidance on the likelihood

of a rate hike this year.

SINGAPORE DOLLAR

The Singapore dollar rose 0.1 percent against the

dollar, despite exports from the city state stumbling more than

expected in January.

Singapore's non-oil domestic exports (NODX) fell 10.1

percent in January from a year earlier, data from the trade

agency Enterprise Singapore showed, which was worse than a 1.6

percent decline predicted by a Reuters poll.

Last week, Singapore posted its slowest economic growth in

more than two years in the fourth quarter and its trade ministry

warned that manufacturing is likely to face significant

moderation this year.

"The government's budget due out later today will likely

need to incorporate some offsetting measures to stimulate the

domestic economy in the face of mounting external weakness." ING

said in a note.

INDONESIAN RUPIAH

The Indonesian rupiah rose 0.39 percent on Monday

after posting its biggest weekly fall in more than two months in

the last week.

Indonesia's trade deficit could deteriorate further due to a

rise in crude oil prices, analysts said. The country is one

Asia's biggest oil importers.

The country's trade deficit swelled in January as exports

fell sharper than expected, although imports contracted for the

first time in 19 months, data from the statistics bureau showed

on Friday.

The following table shows rates for Asian currencies against

the dollar at 0519 GMT.

CURRENCIES VS U.S. DOLLAR

Change on the day at

0519 GMT

Currency Latest Previous Pct

bid day Move

Japan yen 110.520 110.48 -0.04

Sing dlr 1.356 1.3565 +0.05

Taiwan dlr 30.818 30.850 +0.10

Korean won 1124.70 1128.7 +0.36

0

Baht 31.200 31.26 +0.19

Peso 52.350 52.3 -0.10

Rupiah 14085.0 14140 +0.39

00

Rupee 71.475 71.22 -0.36

Ringgit 4.078 4.083 +0.12

Yuan 6.756 6.7750 +0.28

Change so far in

2019

Currency Latest End 2018 Pct

bid Move

Japan yen 110.520 109.56 -0.87

Sing dlr 1.356 1.3627 +0.51

Taiwan dlr 30.818 30.733 -0.28

Korean won 1124.70 1115.70 -0.80

0

Baht 31.200 32.55 +4.33

Peso 52.350 52.47 +0.23

Rupiah 14085.0 14375 +2.06

00

Rupee 71.475 69.77 -2.39

Ringgit 4.078 4.1300 +1.28

Yuan 6.756 6.8730 +1.73

(Reporting By Patturaja Murugaboopathy; editing by Darren

Schuettler)