October 6, 2016 / 5:11 AM / 10 months ago

EM ASIA FX-Asia FX step back before U.S. jobs data; exporters lift won

* ECB tapering woes stay; most EM Asia bond prices down
    * Strong U.S. non-farm payrolls may add to Fed hike views
    * Ringgit fails to benefit much from higher oil prices

 (Adds text, updates prices)
    By Jongwoo Cheon
    SINGAPORE, Oct 6 (Reuters) - Most emerging Asian currencies
pulled back on Thursday as traders took some money off the table
as they wait on key U.S. jobs data for clues on when the Federal
Reserve might raise interest rates.
    The South Korean won ticked up slightly,
outperforming regional peers, on demand from exporters for
settlements.
    Asian equities rose on solid U.S. economic data and
overnight gains in crude prices. Oil prices on Wednesday rose
about 2 percent with Brent crude hitting $52.09 a
barrel, its highest since June 10. 
    Growing optimism on the world's top economy could encourage
the Fed to raise interest rates in December, with some top U.S.
central bank officials already backing a tightening.
    Investors also grew wary of possible tapering of stimulus by
the European Central Bank as such a move could reduce global
liquidity, which has been supporting Asian currencies and bonds.
Most regional government bond prices slumped further.
    "With crude essentially back at the 50 handle and defusing
somewhat global stagflation/deflation concerns, any hint of any
taper... from a major central bank will be expected to catalyse
a potential collision with the strong dollar narrative,
resulting in heightened volatility ahead," said Emmanuel Ng,
foreign exchange strategist at OCBC Bank, in a note.
    U.S. employers are predicted to have added 175,000 jobs last
month, according to the median forecast of economists polled by
Reuters. The data is due on Friday and a solid figure could add
to expectations of a Fed rate hike before year-end.
    The country's service sector activity recovered sharply in
September from six-year low hit in August, the Institute of
Supply Management (ISM) survey showed on Wednesday. 
    Chicago Federal Reserve Bank President Charles Evans said on
Wednesday he would be "fine" with raising interest rates by year
end if economic data continued to come in firm. 
    
    WON
    The won found more support as corporate demand prompted
traders and some offshore funds to cut dollar holdings, although
it was off session highs on caution ahead of the U.S. jobs data.
    Seoul stocks were supported by market heavyweight
Samsung Electronics hitting a record high.
    Samsung said on Thursday it will carefully review proposals
made by U.S. hedge fund Elliott Management for restructuring and
a special dividend. 

    CURRENCIES VS U.S. DOLLAR
    Change on the day at 0430 GMT
  Currency                Latest bid   Previous day  Pct Move
  Japan yen                   103.44         103.50     +0.06
  Sing dlr                    1.3702         1.3702     +0.00
  Taiwan dlr                  31.374         31.371     -0.01
  Korean won                 1110.77        1113.70     +0.26
  Baht                         34.81          34.81     +0.01
  Peso                        48.240         48.285     +0.09
  Rupiah                       12987          12995     +0.06
  Rupee                        66.59          66.50     -0.14
  Ringgit                     4.1310         4.1350     +0.10
 *Yuan                        6.6745         6.6745      0.00
                                                             
  Change so far in 2016                                      
  Currency                Latest bid  End prev year  Pct Move
  Japan yen                   103.44         120.30    +16.30
  Sing dlr                    1.3702         1.4177     +3.47
  Taiwan dlr                  31.374         33.066     +5.39
  Korean won                 1110.77        1172.50     +5.56
  Baht                         34.81          36.00     +3.43
  Peso                         48.24          47.06     -2.45
  Rupiah                       12987          13785     +6.14
  Rupee                        66.59          66.15     -0.66
  Ringgit                     4.1310         4.2935     +3.93
  Yuan                        6.6745         6.4936     -2.71
  * Chinese financial markets are closed for holidays this week.

 (Reporting by Jongwoo Cheon; Editing by Shri Navaratnam)

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