October 25, 2018 / 6:25 AM / 4 months ago

EM ASIA FX-Asia units slip as Wall St rout, growth fears sap risk appetites

    * Global sell-off hits EM currencies
    * Malaysia's ringgit falls for sixth day
    * Depreciation seen ahead for Korean won

 (Adds text, updates prices)
    By Devika Syamnath
    Oct 25 (Reuters) - Most emerging Asian currencies weakened
on Thursday after a rout in tech stocks erased all of Wall
Street's gains for the year and crushed risk appetites in global
markets.
    Worries were compounded by threats to global growth such as
slowing earnings momentum, interest rate hikes, the Sino-U.S.
trade war as well as continuing international scrutiny of Saudi
Arabia over the murder of a journalist.
    "Appetite for risky assets is simply not as good as it was a
month ago," said DBS in a note to clients.
    An index measuring the U.S. currency versus six major
peers traded around 0.16 percent lower in Asia at 96.26, but
still near levels hit when it had gained 0.5 on Wednesday.

    South Korea's won lost the most and touched a
two-week low, down 0.6 percent. The year's worst regional
performer, the Indian rupee, shed 0.2 percent against
the dollar.
    Taiwan's dollar, Indonesia's rupiah, the
Malaysian ringgit and the Thai baht all inched
down.
    Among those, the baht has declined the least against the
dollar this year, supported by Thailand's solid fundamentals. On
the day, the currency plumbed 2-week lows, down 0.1 percent. 
    
    RINGGIT FALLS AND FALLS 
    The currency was on track for its sixth consecutive daily
loss against the dollar.
    This comes after the Oct. 18 government announcement that
Malaysia will see wider fiscal deficits and slower economic
growth than earlier forecast for this year and through 2020.

    Malaysia's MIDF Amanah Investment Bank said, "the slowdown
is expected particularly due to the moderating performance of
external trade sectors."
    Lower oil prices have added to the country's economic
problems.
    The ringit has seen about 3 percent shaved off its value
this year.   
    
    
    KOREAN WON 
    South Korea's economy grew slightly slower than expected in
the third quarter, and in line with the previous three-month
period, as a plunge in domestic investment offset the positive
effects from government stimulus and resilient exports.

    DBS, in a note, said the won "is about to resume its
depreciation after consolidating between 1115 and 1135 in the
past 3-4 months". 
    "Look for the won to keep heading south with equities into a
weaker 1150-1200 range against the USD over the medium-term,"
the note added.
    The currency has lost about 6 percent against the dollar
this year.
    
    
    The following table shows rates for Asian currencies against
the dollar at 0537 GMT.
    CURRENCIES VS U.S. DOLLAR
    
 Currency                     Latest bid  End 2017  Pct Move
 Japan yen                    112.050     112.25    +0.18
 Sing dlr                     1.380       1.3806    +0.01
 Taiwan dlr                   30.974      30.947    -0.09
 Korean won                   1139.100    1132.3    -0.60
 Baht                         32.910      32.87     -0.12
 Peso                         53.750      53.75     +0.00
 Rupiah                       15200.000   15195     -0.03
 Rupee                        73.295      73.15     -0.20
 Ringgit                      4.170       4.1655    -0.11
 Yuan                         6.943       6.9422    -0.01
                                                    
 Change so far in 2018                              
 Currency                     Latest bid  End 2017  Pct Move
 Japan yen                    112.050     112.67    +0.55
 Sing dlr                     1.380       1.3373    -3.11
 Taiwan dlr                   30.974      29.848    -3.64
 Korean won                   1139.100    1070.50   -6.02
 Baht                         32.910      32.58     -1.00
 Peso                         53.750      49.977    -7.02
 Rupiah                       15200.000   13565     -10.76
 Rupee                        73.295      63.87     -12.86
 Ringgit                      4.170       4.0440    -3.02
 Yuan                         6.943       6.5069    -6.28
 

 (Reporting by Devika Syamnath in Bengaluru; Editing by Richard
Borsuk)
  
 
 
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