EM ASIA FX-Most currencies firm as investors shrug off weak China data, yuan flat

(Adds text, updates prices)

By Aditya Soni

Nov 14 (Reuters) - Most Asian currencies firmed slightly on

Tuesday, shrugging off weak China data as the dollar traded

cautiously ahead of inflation data due this week that could set

the tone for impending U.S. interest rate hikes.

The dollar index, which tracks the greenback against

six major currencies, was down 0.02 percent despite a rise in

U.S. Treasury yields, usually a source of strength for the

dollar.

"The key data that market is looking out for is the U.S.

inflation numbers that are due tomorrow. They will be important

not for the December rate hike as from all accounts it is a done

deal but more for the potential path of Fed rate hikes over the

course of 2018," said Khoon Goh, head of Asia research at ANZ.

A Reuters poll forecast the U.S. consumer price index would

rise 0.1 percent in October after advancing 0.5 percent in

September.

A Federal Reserve official said on Monday he expects to back

an interest rate hike next month despite caution over low

inflation because U.S. monetary policy needs to be positioned to

deal with future economic shocks.

The dollar was also pressured by worries over possible

delays to U.S. President Donald Trump's tax plans as

Congressional Republicans pushed ahead on Monday with their tax

code overhaul, but risks remain with major intraparty disputes

unsettled.

"If we do get a movement on that (U.S. tax reform) and if it

passes before Christmas it would be supportive of the dollar.

But at this point in time, the markets are taking the view that

perhaps there could be some slippage into the early part of next

year, which is why we are seeing the dollar ease off a bit,"

said Khoon Goh.

The Korean won led the gains among the regional

currencies as it rose 0.3 percent, while the Philippine peso

climbed to its highest since Oct. 6, on track for

fifth consecutive session of gains.

"We are still seeing equity inflows in Asia and that is

helping to prop up the Asian currencies."

Foreign investors returned to Asian equities in October,

following three consecutive months of retreat, lured back by the

region's strong economic growth and a rise in corporate

earnings.

October data from seven Asian exchanges showed foreign

investors bought a net total of about $2.5 billion, the highest

in four months.

The Taiwan dollar, Singapore dollar and

Malaysian ringgit also gained ground marginally.

The Chinese yuan traded flat after data on Monday

showed the economy cooled further last month, with industrial

output, fixed asset investment and retail sales missing

expectations.

INDIAN RUPEE

The Indian rupee weakened 0.1 percent after retail

inflation rose to a seven-month high in October, driven by food

and fuel inflation.

India's annual consumer inflation in October

increased to 3.58 percent from a year earlier, government data

showed on Monday.

"The bigger-than-expected rise in India’s CPI inflation for

October will lead to more bond outflows and undermine the rupee

afterwards. Rising oil prices could widen the nation’s hovering

current account deficit in addition to spurring India’s CPI

inflation," Scotiabank said in a note.

The central bank of India is scheduled to hold a policy

review on Dec. 6.

The following table shows rates for Asian currencies against

the dollar at 0535 GMT.

CURRENCIES VS U.S. DOLLAR

Change on the day at

0535 GMT

Currency Latest Previous Pct

bid day Move

Japan yen 113.630 113.61 -0.02

Sing dlr 1.361 1.3616 +0.05

Taiwan dlr 30.176 30.190 +0.05

Korean won 1117.80 1120.6 +0.25

0

Baht 33.060 33.06 +0.00

Peso 51.120 51.205 +0.17

Rupiah 13530.0 13550 +0.15

00

Rupee 65.455 65.42 -0.05

Ringgit 4.188 4.19 +0.05

Yuan 6.640 6.6398 -0.01

Change so far

Currency Latest End 2016 Pct

bid Move

Japan yen 113.630 117.07 +3.03

Sing dlr 1.361 1.4490 +6.47

Taiwan dlr 30.176 32.279 +6.97

Korean won 1117.80 1207.70 +8.04

0

Baht 33.060 35.80 +8.29

Peso 51.120 49.72 -2.74

Rupiah 13530.0 13470 -0.44

00

Rupee 65.455 67.92 +3.77

Ringgit 4.188 4.4845 +7.08

Yuan 6.640 6.9467 +4.62

(Reporting by Aditya Soni in Bengaluru; Editing by Eric Meijer)