* Taiwan dollar leads gains on Tuesday
* S.Korean won top loser in 2019
* Thailand's baht leads gains in 2019
(Adds text, updates prices)
By Shriya Ramakrishnan
Dec 31 (Reuters) - Most Asian currencies were set to end the
year on a firm note, with the Taiwan dollar leading gains on
Tuesday, as investors cheered fresh developments on the
Sino-U.S. trade deal front and upbeat factory activity data from
China.
The White House's trade adviser said on Monday the Phase 1
deal would likely be signed next week, but said confirmation
would come from President Donald Trump or the U.S. Trade
Representative. The deal announced earlier this month has alleviated
concerns about near-term escalation in tensions between the
world's two top economies - a major sign of relief for
currencies in Asia, most of which ended 2018 in the red.
Adding to the upbeat sentiment, data showed factory activity
in China expanded for a second straight month in December, as
Beijing's stimulus measures buoyed domestic demand. The Taiwan dollar TWD=TP strengthened 0.5% on Tuesday,
hitting its best level in more than a year. The trade-reliant
economy has bucked a regional trend of growth downgrades, helped
by manufacturers moving production back home from China to avoid
higher tariffs.
China's yuan CNY=CFXS extended gains to a near three-week
high, supported by a firmer-than-expected midpoint fixing by the
central bank.
Volatility was high during the year, with the currency
breaching the key 7 per dollar level for the first time in over
a decade in August, as trade tensions intensified. The yuan was
set for a second straight annual loss.
The Singapore dollar SGD= edged up 0.1%, while the
Malaysian ringgit MYR= advanced 0.3%.
Investor focus will now turn to the fourth-quarter growth
figures for Singapore, which is forecast to have expanded at a
slightly faster pace, with economists expecting a pick-up in the
services sector to compensate for a prolonged manufacturing
downturn. The Indian rupee INR= ticked up 0.1% but was set for a
second annual loss. Concerns over a slowdown in growth weighed
on the rupee this year, with economists stressing on the need
for more fiscal intervention.
Financial markets in the Philippines, Thailand, Indonesia
and South Korea were closed for holidays.
The Philippine peso PHP= and the Indonesian rupiah IDR=
were up 0.2% and 0.4% respectively, in light offshore trade.
The peso and the rupiah were poised to gain about 3.5% and
3.6% respectively this year, with analysts saying these
currencies benefited from demand for higher yields in a
low-interest rate environment.
The South Korean won KRW=KFTC was the region's worst
performer for the year, weakening 3.5%, while the Thai baht
THB=TH emerged as the top performer, driven by its large
current account surplus.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0533 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.640 108.86 +0.20
Sing dlr 1.347 1.3485 +0.10
Taiwan dlr 30.000 30.135 +0.45
Peso 50.680 50.78 +0.20
Rupiah 13870.000 13920 +0.36
Rupee 71.280 71.31 +0.05
Ringgit 4.092 4.1045 +0.31
Yuan 6.978 6.9865 +0.12
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.640 109.56 +0.85
Sing dlr 1.347 1.3627 +1.16
Taiwan dlr 30.000 30.733 +2.44
Korean won 1156.400 1115.70 -3.52
Baht 29.900 32.55 +8.86
Peso 50.680 52.47 +3.53
Rupiah 13870.000 14375 +3.64
Rupee 71.280 69.77 -2.12
Ringgit 4.092 4.1300 +0.93
Yuan 6.978 6.8730 -1.50