EM ASIA FX-Most Asian currencies slide on trade jitters

(Corrects South Korean won change in paragraph 14 to 5.2 pct

from 2.3 pct)

* Two-day trade talks to resume in Washington

* S. Korean won hits more than 2-year low

* Philippine Q1 growth comes lower than expected

By Shriya Ramakrishnan

May 9 (Reuters) - Most emerging Asian currencies weakened on

Thursday, with the South Korean won sliding to a more than

two-year low as concerns about an escalation in trade tensions

ahead of crucial U.S.-China talks hit exporter currencies.

Markets nervously await the start of two-day trade talks

between U.S. and Chinese officials in Washington, due later in

the day. Chinese Vice Premier Liu He is seeking to salvage a

deal to avert a sharp rise in tariffs, after U.S. officials said

Beijing had backtracked on earlier commitments.

U.S. President Donald Trump accused China of breaking the

deal it had reached in trade talks, while Beijing announced it

would retaliate if tariffs rise as planned on

Friday.

"If talks break down and most exports from China to the U.S.

face 25 percent tariff from this Friday onward, risks of a

financial market collapse, extreme risk aversion, and sharp

slowdown in global growth will spike," DBS Bank said in a note.

"Even if last moment developments lead to a postponement of

escalation, the ill-will generated by this week’s developments

will not go away."

China's yuan traded 0.4 percent lower against the

dollar, its weakest level in four months.

The Philippine peso edged lower, after data showed

that the Philippines economy grew at its weakest pace in four

years in the first quarter, reinforcing views the central bank

could lower key interest rates when it meets later in the day.

The Indonesian rupiah depreciated 0.4 percent to the

dollar, touching its lowest point since Jan. 4, while the Indian

rupee eased 0.2 percent.

Meanwhile, the Thai baht, emerging Asia's top

performing currency this year, swung between positive and

negative territory.

Long-delayed results of Thailand's first election since a

2014 military coup released on Wednesday produced no clear

winner, but gave the pro-army party, which is seeking to keep

the current junta leader in power, a clear advantage.

S. KOREAN WON HITS MORE THAN 2-YEAR LOW

Leading declines in the region, the South Korean won

weakened 0.7 percent against the dollar, in tandem

with a slump in the local equity benchmark index.

"Korea is strongly linked to China because of cross border

trade, and the won is also a great indicator of trade in

emerging Asia at large," Mahesh Sethuraman, Deputy Head of Sales

Trading, Asia Pacific at Saxo Capital Markets said.

"So, if the U.S.-China trade deal breaks down, it is very

likely to have an adverse impact on emerging Asia trade at

large, and therefore shorting Korean won is a good proxy for

expressing that view."

The won is emerging Asia's worst performing currency this

year, declining about 5.2 percent, after South Korea's economy

suffered its worst quarter since the global financial crisis in

the January-March period.

The following table shows rates for Asian currencies against

the dollar at 0524 GMT.

CURRENCIES VS U.S. DOLLAR

Currency Latest bid Previous day Pct Move

Japan yen 109.940 110.1 +0.15

Sing dlr 1.363 1.3622 -0.04

Taiwan dlr 30.932 30.920 -0.04

Korean won 1177.300 1169.4 -0.67

Baht 31.810 31.81 +0.00

Peso 52.230 52.21 -0.04

Rupiah 14345.000 14290 -0.38

Rupee 69.848 69.71 -0.20

Ringgit 4.150 4.147 -0.07

Yuan 6.810 6.7831 -0.39

Change so far in 2019

Currency Latest bid End 2018 Pct Move

Japan yen 109.940 109.56 -0.35

Sing dlr 1.363 1.3627 -0.01

Taiwan dlr 30.932 30.733 -0.64

Korean won 1177.300 1115.70 -5.23

Baht 31.810 32.55 +2.33

Peso 52.230 52.47 +0.46

Rupiah 14345.000 14375 +0.21

Rupee 69.848 69.77 -0.11

Ringgit 4.150 4.1300 -0.48

Yuan 6.810 6.8730 +0.93

(Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Sam

Holmes)