November 27, 2019 / 5:45 AM / 19 days ago

EM ASIA FX-Asian currencies hesitate on trade deal uncertainty

    * Singapore dollar weakens
    * Thailand Oct MPI falls
    * China's Oct industrial profits dips 9.9% y/y

 (Adds text, updates prices)
    By Shriya Ramakrishnan
    Nov 27 (Reuters) - Emerging Asian currencies traded in tight
ranges against the dollar on Wednesday, as investors were
reluctant to make big bets on the outcome of U.S.-China trade
talks. 
    U.S. President Donald Trump on Tuesday said Washington was
in the "final throes" of work on a deal that would defuse a
16-month trade war with Beijing, but reiterated U.S. support for
anti-government protesters in Hong Kong, a huge sore point with
China.
    "..the bigger risk is an augmented form of "bait and switch"
with regards to U.S.-China trade conflict, where investors
seduced by a rapidly progressing 'Phase-1' trade deal are
blind-sided by the escalating tech tensions between U.S. and
China," analysts at Miuzho Bank said in a note.
    China' yuan was marginally higher, but gains were
capped by weak industrial profit readings, suggesting business
conditions in the world's second-largest economy are continuing
to deteriorate amid weak domestic demand and U.S. tariff
pressure.
    Despite signs of progress from both sides on a trade deal,
markets have been on edge amid a lack of concrete details on
talks and clarity on other sticking points such as a rollback of
existing tariffs imposed by U.S. - sought by Beijing as part of
the deal.
    The Indonesian rupiah edged lower, while the
Singapore dollar weakened 0.2%.
    Indonesia's Vice Finance Minister on Wednesday said GDP
growth for Southeast Asia's largest economy is now seen at
5.05%, compared to its previous estimate of 5.08%.
    The Philippine peso depreciated as much as 0.2%,
before erasing some losses, while the Indian rupee strengthened
0.11%. 
    
    THAI BAHT
    
    The Thai baht, emerging Asia's top performing
currency so far this year, weakened slightly against the dollar
on the day.
    On Tuesday, the Thai government rolled out stimulus measures
 to inject more than 100 billion baht ($3.31 billion) into the
economy, whose exports have come under pressure to global trade
tensions and a strong baht.
    "THB remains firm despite some sell off by foreign investors
in bonds and equities in reaction to the announcement of fiscal
stimulus program," Mahesh Sethuraman, Deputy Head of Global
Sales Trading at Saxo Capital Markets said. 
    "The healthy current account balance will continue to keep
THB relatively stronger even if we see some pullback against
USD. If we look at the 5 year chart, the thai baht is trading
very close to a 5-year low….so this is just noise." 
    Thailand's manufacturing production index in October fell
8.45% from a year earlier, dragged down by lower production of
cars, petroleum and steel, the industry ministry said on
Wednesday.
    

    CURRENCIES VS U.S. DOLLAR
    
    
 Change on the day at   0531 GMT                  
 Currency               Latest bid  Previous day  Pct Move
 Japan yen              109.130     109.03        -0.09
 Sing dlr               1.366       1.3639        -0.16
 Taiwan dlr             30.504      30.512        +0.03
 Korean won             1176.600    1176.7        +0.01
 Baht                   30.226      30.19         -0.12
 Peso                   50.890      50.83         -0.12
 Rupiah                 14090.000   14080         -0.07
 Rupee                  71.408      71.48         +0.11
 Ringgit                4.180       4.181         +0.02
 Yuan                   7.030       7.0322        +0.03
                                                  
 Change so far in 2019                            
 Currency               Latest bid  End 2018      Pct Move
 Japan yen              109.130     109.56        +0.39
 Sing dlr               1.366       1.3627        -0.25
 Taiwan dlr             30.504      30.733        +0.75
 Korean won             1176.600    1115.70       -5.18
 Baht                   30.226      32.55         +7.69
 Peso                   50.890      52.47         +3.10
 Rupiah                 14090.000   14375         +2.02
 Rupee                  71.408      69.77         -2.29
 Ringgit                4.180       4.1300        -1.20
 Yuan                   7.030       6.8730        -2.23
 



($1 = 30.1900 baht)

 (Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Kim
Coghill)
  
 
 
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