* China response to virus outbreak plugs Asia FX selling
* Do not expect major reversal in Asian gains - analyst
* The Philippine peso rebounds after six sessions of losses
* Malaysia central bank policy rate decision due 0700 GMT
(Adds text, updates prices)
By Rashmi Ashok
Jan 22 (Reuters) - Most Asian units were trading subdued on
Wednesday as concerns about a coronavirus outbreak in China kept
risk appetite on the backfoot, although the South Korean won
found support amid upbeat GDP data on the trade-reliant economy.
The death toll from a new flu-like coronavirus in China rose
to nine on Wednesday with 440 confirmed cases, health officials
said. Sentiment, however, got a lift as China's response to the
outbreak tempered fears of a global pandemic. The Chinese yuan CNY=CFXS steadied after weakening 0.6% in
the previous session, although it still traded above the 6.9
level against the greenback.
Most analysts say fears of a repeat of the SARS virus
outbreak in 2003 that plunged the region into economic chaos are
unfounded, as countries are now better equipped to fight an
epidemic.
"We do not see a huge reversal of Asian gains and expect
merely modest unwinding of stretched positions," analysts at
Maybank wrote in a note.
However, investors are unlikely to embrace risky Asian
assets anytime soon and will likely wait for further updates
from Beijing before placing big bets.
The World Health Organization meets later in the day to
consider whether the outbreak is an international emergency.
"If the authorities around the world show signs of failing
to contain the coronavirus for an extended length of time, that
could prompt a sustained risk-off period in the markets," wrote
Han Tan, market analyst at FXTM.
While most currencies were flat, the Philippine peso PHP=
strengthened 0.5% after weakening for six consecutive sessions.
The Thai baht THB=TH flitted within a tight range as
investors shrugged off data that showed the country's
customs-cleared exports in December dropped 1.28% from last
year, but came in better than as forecast in a Reuters poll.
Malaysia's central bank is expected to stand pat on its
benchmark interest rate at a policy review due at 0700 GMT, as
global confidence about economic growth continues to improve in
the wake of the Sino-U.S. Phase 1 trade pact. KOREAN WON TICKS HIGHER
The Korean won KRW=KFTC , while more sensitive to export
numbers, traded 0.3% stronger after data showed that a surge in
government spending helped the economy post its fastest
quarterly growth in more than two years. "GDP growth rebounded more strongly than expected at the end
of last year, and the economy should continue to stage a
recovery over the coming quarters," Alex Holmes, Asia Economist
at Capital Economics wrote in a note.
"The strong outturn in Q4 means we no longer think that the
Bank of Korea will cut rates again this year," he added.
The central bank had cut its policy rate twice in 2019 in
response to slow growth and low inflation.
The following table shows rates for Asian currencies against the
dollar at 0518 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 110.020 109.86 -0.15
Sing dlr 1.349 1.3499 +0.05
Taiwan dlr 30.002 29.998 -0.01
Korean won 1164.000 1167 +0.26
Baht 30.370 30.35 -0.07
Peso 50.850 51.08 +0.45
Rupiah 13660.000 13650 -0.07
Rupee 71.190 71.20 +0.01
Ringgit 4.072 4.0705 -0.04
Yuan 6.901 6.9050 +0.05
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 110.020 108.61 -1.28
Sing dlr 1.349 1.3444 -0.36
Taiwan dlr 30.002 30.106 +0.35
Korean won 1164.000 1156.40 -0.65
Baht 30.370 29.91 -1.51
Peso 50.850 50.65 -0.39
Rupiah 13660.000 13880 +1.61
Rupee 71.190 71.38 +0.27
Ringgit 4.072 4.0890 +0.42
Yuan 6.901 6.9632 +0.90