October 15, 2019 / 5:25 AM / 2 months ago

EM ASIA FX-Most Asian currencies drop as trade optimism fades

 (Adds text, updates prices)
    By Patturaja  Murugaboopathy 
    Oct 15 (Reuters) - Most Asian currencies edged lower on
Tuesday, paring gains from the previous session as earlier
optimism about a breakthrough in U.S.-China trade negotiations
waned on reports a deal was not yet finalised.
    Curbing investor appetite in Asia was a Bloomberg report,
citing sources, that said China wants more talks before the end
of October to hammer out the details of U.S. President Donald
Trump's proposed deal before Chinese President Xi Jinping signs
it.
    Last week, Trump signalled the two sides had reached
agreement on "phase one" of a deal and suspended a tariff hike,
but officials said much work still needed to be done.

    The Philippine peso, Thai baht, and the
Indian rupee, each fell about 0.1% on the day. 
    "The initial enthusiasm over the U.S.-China trade
breakthrough had been exhausted at the start of the week, tamed
also by the fact that China is seeking more talks prior to the
signing of a 'Phase One' deal," said Jingyi Pan, a
Singapore-based market strategist with financial services firm
IG.
    Also weighing on sentiment was economic data from China
showing a fall in factory gate prices, which added to the
pessimistic mood in Asian currency markets.
    China's producer price index (PPI), considered a key
barometer of corporate profitability, dropped 1.2% year-on-year
in September, marking the steepest decline since July 2016. 
    China's yuan edged lower despite its central bank
lifting its official yuan midpoint to the highest level in a
month on Tuesday.
    The Malaysian ringgit also fell on worries that
India, the biggest buyer of Malaysian palm oil so far in 2019,
could raise import taxes or enforce other measures to curb
imports from Malaysia.
    Also, some analysts said uncertainty ahead of the Brexit
talks kept investors cautious on the day.
    Officials from Britain and the EU will meet at a
make-or-break summit on Thursday and Friday that will determine
whether or not Britain is headed for a so-called no-deal Brexit.
    "I see that as an another political event that market
participants will be watching across the globe and here in Asia
as well," said IG's Pan.
     "That said, in the near-term the impact may be contained
given the likelihood that an extension could be the case." 

The following table shows rates for Asian currencies against the
dollar at 0431 GMT.
    CURRENCIES VS U.S. DOLLAR
   Change on the day                          
    at   0431 GMT                       
  Currency             Latest  Previou     Pct
                          bid    s day    Move
  Japan yen            108.32   108.38   +0.06
                       0                
  Sing dlr             1.369    1.3694   +0.00
  Taiwan dlr           30.592   30.620   +0.09
  Korean won           1184.2   1184.9   +0.06
                       00               
  Baht                 30.430    30.41   -0.07
  Peso                 51.600    51.56   -0.08
  Rupiah               14140.    14135   -0.04
                       000              
  Rupee                71.315    71.23   -0.12
  Ringgit              4.188     4.186   -0.04
  Yuan                 7.074    7.0670   -0.10
                                              
  Change so far in                            
 2019                                   
  Currency             Latest  End         Pct
                       bid     2018       Move
  Japan yen            108.32   109.56   +1.14
                       0                
  Sing dlr             1.369    1.3627   -0.49
  Taiwan dlr           30.592   30.733   +0.46
  Korean won           1184.2  1115.70   -5.78
                       00               
  Baht                 30.430    32.55   +6.97
  Peso                 51.600    52.47   +1.69
  Rupiah               14140.    14375   +1.66
                       000              
  Rupee                71.315    69.77   -2.17
  Ringgit              4.188    4.1300   -1.37
  Yuan                 7.074    6.8730   -2.84
 

 (Reporting By Patturaja Murugaboopathy; Editing by Sam Holmes)
  
 
 
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