September 5, 2019 / 6:10 AM / 10 days ago

EM ASIA FX-Asian currencies buoyant as China, U.S. trade talks stoke confidence

    * U.S.-China trade talk plans soothes nervous markets
    * South Korean won top gainer, adds 0.8%
    * Chinese yuan ticks higher for second session

 (Adds text, updates prices)
    By Rashmi Ashok
    Sept 5 (Reuters) - Most emerging Asian currencies rose on
Thursday, led by the Korean won after Washington and Beijing
formally agreed to resume trade talks in October, giving a
fillip to investor sentiment.
    The United States and China said they would hold high-level
trade talks in early October, in announcements that helped ease
more immediate recession fears and gave Asian assets early
    The Chinese onshore yuan rose as much as 0.3%
after news of the trade talks surfaced, but later pared gains to
settle 0.2% higher at 7.133 against the dollar by 0528 GMT.
    The Korean won, which is particularly sensitive
to trade tensions owing to the nation's large reliance on
exports, added 0.8% and was the session's top performer.
    The Taiwan dollar, which is also sensitive to
international trade developments, rose 0.3%.
    Sentiment in risk asset markets was also bolstered by
apparent breakthroughs in the political standoffs in Hong Kong
and Britain. In the UK, a parliamentary vote put on hold a
no-deal Brexit while Hong Kong withdrew the contentious
extradition bill that sparked recent protests.

    The Malaysian ringgit rose 0.3%, adding to the
previous session's gains after an unexpected jump in the
country's exports.
    The Indian rupee firmed against the dollar for a
second straight session after Tuesday's major sell-off.
    While there is a prevailing sense of investor relief,
analysts believe there are still reasons to remain cautious. 
    "Despite the gains in riskier assets, global investors are
not getting carried away by this surge in optimism, having been
seasoned by the tumultuous developments surrounding the
year-long U.S.-China trade conflict," said Han Tan, market
analyst at brokerage FXTM in a note.
    For risk sentiment to improve, markets will need more
substantial evidence that China and the United States are closer
do drawing a trade deal while the possibility of a no-deal
Brexit would also have to be snuffed out almost entirely, he
The following table shows rates for Asian currencies against the
dollar at 0528 GMT.
 Currency               Latest bid  Previous day  Pct Move
 Japan yen              106.600     106.38        -0.21
 Sing dlr               1.384       1.3842        +0.04
 Taiwan dlr             31.288      31.365        +0.25
 Korean won             1198.400    1208.2        +0.82
 Baht                   30.570      30.585        +0.05
 Peso                   51.850      51.87         +0.04
 Rupiah                 14160.000   14150         -0.07
 Rupee                  71.870      72.12         +0.34
 Ringgit                4.191       4.204         +0.31
 Yuan                   7.133       7.1450        +0.16
 Change so far in 2019                            
 Currency               Latest bid  End 2018      Pct Move
 Japan yen              106.600     109.56        +2.78
 Sing dlr               1.384       1.3627        -1.51
 Taiwan dlr             31.288      30.733        -1.77
 Korean won             1198.400    1115.70       -6.90
 Baht                   30.570      32.55         +6.48
 Peso                   51.850      52.47         +1.20
 Rupiah                 14160.000   14375         +1.52
 Rupee                  71.870      69.77         -2.92
 Ringgit                4.191       4.1300        -1.46
 Yuan                   7.133       6.8730        -3.65
 (Reporting by Rashmi Ashok in Bengaluru; Editing by Sam Holmes)
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