* Taiwan dollar, S. Korean won lead gains
* China's yuan at highest level in over 2 weeks
* Thai baht edges up ahead of Nov. trade data
(Adds text, updates prices)
By Shriya Ramakrishnan
Dec 30 (Reuters) - Emerging Asian currencies posted sharp
gains against the dollar on Monday, as growing hopes for an
imminent Sino-U.S. trade pact in the New Year and positive
sentiment stemming from a stronger yuan lifted appetite for
riskier assets.
China's commerce ministry said on Sunday that it has
"proactively dealt with" trade frictions with the United States
this year and that it is in close touch with the U.S. on signing
the trade deal. "Tail risk from tariff escalations are abating, and this
plays out favourably for export-oriented currencies... it really
seems that more than anything, a continuing lack of negative
news coming from the U.S. administration is quite positive,"
said Stephen Innes, chief Asia market strategist at AxiTrader.
The United States and China announced a Phase 1 agreement
earlier this month, seen as a breakthrough in the months-long
trade conflict between the two largest global economies and that
it would reduce some U.S. tariffs in exchange for a likely spurt
in Chinese purchases of American farm products and other goods.
The Chinese yuan CNY=CFXS rose to its highest level in
more than two weeks, buoyed by a firmer-than-expected midpoint
fixing by the central bank and its decision to switch the
benchmark for floating-rate loans. Analysts say the new benchmark could help lower borrowing
costs and boost the flagging economic growth.
"When it comes to Asia risk markets, how the yuan moves
really dictates the pace of play in a lot of the other
currencies to an extent," Innes added.
Export-focused currencies South Korean won KRW=KFTC and
the Taiwan dollar TWD=TP , which are largely seen as lead
indicators for trade in Asia, strengthened 0.5% each.
Investors will now focus on South Korea's December trade
figures on Jan. 1, the first monthly foreign trade data to be
published by a major exporting economy.
South Korea's finance minister said on Monday that he
expects the rate of decline in December exports to be
significantly lower than that reported in recent months.
The Malaysian ringgit MYR= was set to rally for a third
straight day, while the Indonesian rupiah IDR= advanced 0.3%
Financial markets in Philippines were closed for a holiday,
however the peso PHP= was up 0.1% in light offshore trade.
THAI BAHT
The Thai baht THB=TH edged up, ahead of the release of
official November trade readings.
Last week data showed that Thailand's customs-cleared
exports in November fell 7.39% from a year earlier, while
imports contracted 13.78%. "If imports do not pick up on commencement of more
infrastructure projects, trade surplus and subsequently current
account surplus will probably pick up further from here. A
sizeable C/A (current account) surplus may continue to support
the currency," analysts at Mizuho Bank said in a note.
The baht is Asia's best performing currency this year
despite efforts by the central bank to rein in excessive
strength, which has hurt its exports.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0524 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.130 109.41 +0.26
Sing dlr 1.350 1.3515 +0.14
Taiwan dlr 30.060 30.203 +0.48
Korean won 1156.300 1161.5 +0.45
Baht 30.130 30.15 +0.07
Peso 50.760 50.81 +0.10
Rupiah 13910.000 13945 +0.25
Rupee 71.343 71.36 +0.02
Ringgit 4.112 4.126 +0.34
Yuan 6.983 6.9956 +0.18
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 109.130 109.56 +0.39
Sing dlr 1.350 1.3627 +0.97
Taiwan dlr 30.060 30.733 +2.24
Korean won 1156.300 1115.70 -3.51
Baht 30.130 32.55 +8.03
Peso 50.760 52.47 +3.37
Rupiah 13910.000 14375 +3.34
Rupee 71.343 69.77 -2.20
Ringgit 4.112 4.1300 +0.44
Yuan 6.983 6.8730 -1.58