Singapore Markets closed

EM ASIA FX-Most Asian currencies supported by trade hopes, growth woes cap upside

By Shreya Mariam Job

* Thai manufacturing data weaker than expected * Indian rupee firms for third straight session * China c.bank in no rush to follow global easing (Adds text, updates prices) By Shreya Mariam Job Sept 24 (Reuters) - Most Asian currencies edged higher on Tuesday as investors held out hopes of a Sino-U.S. trade deal as high-level talks were set to resume next month, though fresh signs of gloom in the global economy checked the gains. A survey on Monday showed euro zone business growth stalled in September, dragged down by shrinking activity in powerhouse Germany, rekindling fears of a global recession. The dismal manufacturing readings supported the dollar, which edged higher against a basket of currencies to 98.661. Sentiment was somewhat supported by confirmation that U.S.-China trade talks will resume next month in Washington, though the overall mood remained subdued given the global growth woes. "Broad environment remains mixed for the Asian currencies, with markets unable to shake off Chinese/global growth concerns but trying to draw optimism from the Sino-US trade front," an OCBC note said. The Indian rupee firmed 0.2%, up for a third straight session supported by recent corporate tax cut measures and easing oil prices. The Taiwan dollar also advanced 0.2% after data showed the country's August industrial output had risen 2.3% from the previous year. The yuan strengthened a touch but remained locked in tight ranges as investors awaited the outcome of the U.S.-China trade talks. Earlier in the day, the country's central bank said that China is in no rush to follow other countries in significantly loosening monetary settings but has ample options to help prop up slowing growth. THAI BAHT The Thai baht lost 0.2% after weak manufacturing data bolstered the case for a rate cut in the near future. Thailand's manufacturing production index (MPI) in August dropped 4.4% from a year earlier, compared with a forecast of a 3.6% decline in a Reuters poll. The Bank of Thailand is due to release its rate decision on Wednesday with economists in a Reuters poll expecting it to leave its benchmark interest rate steady after last month's cut. The dismal manufacturing data, however, has prompted some analysts to predict another rate cut in the near future. "If nothing else, such a move (easing) is warranted from the strength of the THB," ING analysts said in a note. The baht has strengthened 6.3% so far this year, as at Monday's close. The following table shows rates for Asian currencies against the dollar at 0609 GMT. CURRENCIES VS U.S. DOLLAR Change on the day at 0609 GMT Currency Latest bid Previous day Pct Move Japan yen 107.550 107.54 -0.01 Sing dlr 1.377 1.3775 +0.07 Taiwan dlr 30.998 31.057 +0.19 Korean won 1193.300 1194 +0.06 Baht 30.540 30.49 -0.16 Peso 52.170 52.13 -0.08 Rupiah 14095.000 14080 -0.11 Rupee 70.805 70.93 +0.18 Ringgit 4.175 4.177 +0.05 Yuan 7.111 7.1190 +0.12 Change so far in 2019 Currency Latest bid End 2018 Pct Move Japan yen 107.550 109.56 +1.87 Sing dlr 1.377 1.3627 -1.01 Taiwan dlr 30.998 30.733 -0.85 Korean won 1193.300 1115.70 -6.50 Baht 30.540 32.55 +6.58 Peso 52.170 52.47 +0.58 Rupiah 14095.000 14375 +1.99 Rupee 70.805 69.77 -1.46 Ringgit 4.175 4.1300 -1.08 Yuan 7.111 6.8730 -3.34 (Reporting by Shreya Mariam Job in Bengaluru)