October 3, 2016 / 4:31 AM / a year ago

EM ASIA FX-Deutsche Bank relief, China factory activity support Asia FX

* Rupiah up after tax amnesty-linked inflows; stocks jump
    * Philippine peso up; sentiment stays bearish on politics
    * China, S.Korea, Malaysia FX markets closed for holidays

 (Adds text, updates prices)
    By Jongwoo Cheon
    SINGAPORE, Oct 3 (Reuters) - Most emerging Asian currencies
rose on Monday as risk sentiment improved after reports of
Deutsche Bank's was negotiating a smaller fine with the U.S.
Department of Justice, and a survey showing China's
manufacturing stabilising. 
    Trading was subdued overall as several regional financial
markets including China and South Korea were closed for
holidays.
    Indonesia's rupiah advanced after the country
enjoyed strong tax amnesty-related inflows last month, with $250
billion of offshore assets declared since the amnesty was 
launched in July. 
    The Philippine peso rebounded as the World Bank
said the economic growth could exceed its projections of 6.2
percent for the next two years. 
    Asian equities rose after a report late on Friday said
Deutsche Bank and the U.S. Department of Justice were
close to agreeing a settlement of $5.4 billion to settle charges
of selling toxic mortgages, rather than the initially touted $14
billion. The report has not been confirmed.
    China's factory activity expanded again in September, an
official survey showed on Sunday, suggesting some recent
positive momentum may be sustained. 
    Still, analysts remained doubtful of more appreciation in
Asian currencies, given risk sentiment could sour anytime.
    "Today's risk-on sentiment may not warrant further gains in
emerging Asian FX, given uncertainties over the U.S. elections,
the Fed's monetary policy and the German banking sector," said
Qi Gao, FX strategist for Scotiabank in Singapore.
    
    RUPIAH
    The rupiah found further support as Jakarta shares 
jumped more than 1 percent, well outperforming regional peers.
    Indonesia's manufacturing activity expanded further in
September with exports orders at a four-year high, a private
survey showed earlier. 
    
    PHILIPPINE PESO
    The peso gained in thin trading as investors cut bearish
bets in the currency, which was driven by political turmoil to
its largest monthly loss for 16 years in September. 
    Foreign investors also turned to net buyers of the
Philippine stock market last week after dumping local
equities over the previous six consecutive weeks.
    Traders, however, were looking to sell the peso on rallies
due to concerns over President Rodrigo Duterte as the alliance
with the United States becomes more fragile.
    "Political premium is still there. An overall risk-off tone
is in markets as the Deutsche Bank saga is still far from over,"
said a senior Philippine bank trader.
    The peso is seen weakening to 49.00 per dollar by the
year-end, the trader added. That was the level last hit in
September 2009.
    
    CURRENCIES VS U.S. DOLLAR
    Change on the day at 0400 GMT
  Currency                 Latest bid   Previous day  Pct Move
  Japan yen                    101.42         101.42     +0.00
  Sing dlr                     1.3652         1.3631     -0.15
  Taiwan dlr                   31.335         31.366     +0.10
 *Korean won                  1101.30        1101.30      0.00
  Baht                          34.62          34.67     +0.14
  Peso                         48.330         48.500     +0.35
  Rupiah                        12985          13047     +0.48
  Rupee                         66.49          66.61     +0.18
 *Ringgit                      4.1320         4.1320      0.00
 *Yuan                         6.6745         6.6745      0.00
                                                              
  Change so far in 2016                                       
  Currency                 Latest bid  End prev year  Pct Move
  Japan yen                    101.42         120.30    +18.62
  Sing dlr                     1.3652         1.4177     +3.85
  Taiwan dlr                   31.335         33.066     +5.52
  Korean won                  1101.30        1172.50     +6.47
  Baht                          34.62          36.00     +3.99
  Peso                          48.33          47.06     -2.63
  Rupiah                        12985          13785     +6.16
  Rupee                         66.49          66.15     -0.51
  Ringgit                      4.1320         4.2935     +3.91
  Yuan                         6.6745         6.4936     -2.71
  * Financial markets in China, Malaysia and South Korea are
closed for holidays.
    

 (Reporting by Jongwoo Cheon; Editing by Eric Meijer)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below