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EM ASIA FX-Asia FX up as Clinton seen winning; baht near 3-month low
October 10, 2016 / 5:21 AM / in 10 months

EM ASIA FX-Asia FX up as Clinton seen winning; baht near 3-month low

5 Min Read

* Thai assets fall after palace statement on king's health
    * Yuan hits six-year low as c.bank drops midpoint
    * Weak U.S. jobs data helps Asia FX; Dec Fed hike views cap

 (Adds text, updates prices)
    By Jongwoo Cheon
    SINGAPORE, Oct 10 (Reuters) - Most emerging Asian currencies
gained on Monday as investors saw a slimmer chance for
Republican Donald Trump to win the U.S. presidency, and after
weaker-than-expected U.S. jobs data.
    The Thai baht, however, hit a near three-month low
after a palace statement said the 88-year-old King Bhumibol
Adulyadej's health was unstable. 
    Regional currencies gave up some of their earlier gains as
China's yuan hit a six-year low, breaching a key
psychological threshold of 6.7 per dollar, with the central bank
fixing its daily guidance rate at its weakest since September
2010. 
    That came as expectations of a Federal Reserve interest rate
hike in December stayed intact despite slowing U.S. employment
growth.
    U.S. job creation slowed for the third straight month in
September and the jobless rate rose, data showed on Friday. The
indicator was not perceived to be weak enough to alter views on
a Fed tightening by year-end. 
    Investors also remained wary of uncertainty caused by the
U.S. Presidential election on Nov. 8, with Trump's campaign 
hurt by a video featuring his vulgar comments about women that
has gone viral on social and mainstream media.
    "The biggest risk I see for Asia FX within the coming month
is the U.S. presidential election, especially if the polls turn
in favour of Trump," said Nordea Markets' chief analyst Amy Yuan
Zhuang in Singapore.
    There is uncertainty about what a Trump administration would
mean for U.S. foreign policy, trade, the economy and even
governance at the Federal Reserve. By contrast, Democrat Hillary
Clinton is seen as a known factor with the middle of the road
policies.
    Wall Street stock index futures were little changed
throughout the candidates' second debate on Sunday U.S. time,
indicating that financial markets continue to believe Clinton
has an edge over Trump. 
        
    BAHT
    The baht lost as much as 0.5 percent to 35.065 per dollar,
its weakest since July 26.
    Bangkok shares briefly dropped more than 3 percent,
while the prices of most Thailand government bonds 
fell. 
    Concerns over the king's health and an eventual succession
have formed the backdrop to more than a decade of bitter
political division in Thailand that has included two military
coups and often-violent street demonstrations.
    
    WON
    South Korea's won rose more than other emerging
Asian currencies on demand from exporters for settlements.
    Local traders unwound some of bearish bets on the
underperforming emerging Asian currency last week.
    The South Korean unit gave up some of its earlier gains on
the yuan's weakness.
    
    CURRENCIES VS U.S. DOLLAR
    Change on the day at 0450 GMT
  Currency                 Latest bid   Previous day  Pct Move
  Japan yen                    102.88         102.88     +0.00
  Sing dlr                     1.3727         1.3731     +0.03
 *Taiwan dlr                   31.480         31.480      0.00
  Korean won                  1111.30        1115.50     +0.38
  Baht                          35.00          34.90     -0.26
  Peso                         48.295         48.305     +0.02
  Rupiah                        12970          12983     +0.10
  Rupee                         66.57          66.68     +0.16
  Ringgit                      4.1430         4.1535     +0.25
  Yuan                         6.7007         6.6745     -0.39
                                                              
  Change so far in 2016                                       
  Currency                 Latest bid  End prev year  Pct Move
  Japan yen                    102.88         120.30    +16.93
  Sing dlr                     1.3727         1.4177     +3.28
  Taiwan dlr                   31.480         33.066     +5.04
  Korean won                  1111.30        1172.50     +5.51
  Baht                          35.00          36.00     +2.87
  Peso                          48.30          47.06     -2.56
  Rupiah                        12970          13785     +6.28
  Rupee                         66.57          66.15     -0.63
  Ringgit                      4.1430         4.2935     +3.63
  Yuan                         6.7007         6.4936     -3.09
  * Taiwan's financial markets are closed for the National Day
holiday.

 (Reporting by Jongwoo Cheon; Editing by Eric Meijer)

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