* Chinese yuan on track to post biggest weekly loss in a
month
* Typhoon Vongfong moves toward the Philippine island of
Luzon
* HSBC cuts global economic growth forecast
(Adds text, updates prices)
By Anushka Trivedi
May 15 (Reuters) - Most Asian currencies traded in a tight
range on Friday, as data showing China's economy is gradually
recovering from the coronavirus shock countered worries over
worsening Sino-U.S. relations.
Market participants are increasingly worried about tensions
between the world's two top economies as U.S. President Donald
Trump blames China for the novel coronavirus that has killed
more than 85,000 Americans.
Trump said he had no interest in speaking to his Chinese
counterpart Xi Jinping right now and suggested he could even cut
ties with the world's second-largest economy. Meanwhile, China's industrial output expanded for the first
time this year as the economy slowly emerged from coronavirus
lockdowns. It rose 3.9% last month from a year earlier, far
exceeding expectations, but retail sales and services activity
continued to contract. The Chinese yuan CNY=CFXS slipped 0.1% and was on its way
to its biggest weekly drop in a month.
The trade-reliant Singapore dollar SGD= and the South
Korean won KRW=KFTC , both highly sensitive to China's economic
fortunes, shed up to 0.2% each.
The won has particularly come under pressure due to a spike
in new virus cases after restrictions were relaxed, and was set
to post a weekly drop of 0.8%.
Investors are closely watching China for clues on how long
demand will take to bounce back as other countries start
relaxing lockdown measures.
However, analysts are less optimistic about a rapid demand
recovery. Mizuho Bank's Riki Ogawa wrote the "fact is, even as
economies prepare to emerge from varying degrees of lockdowns,
restoration of 'normalcy' is a much longer road."
"Threats of second wave of infections across Asia serve as a
sobering warning against complacency about normalcy, just as
complacency about the U.S.-China Phase 1 deal leading to
normalcy in global trade has backfired."
HSBC slashed an already bleak global and emerging market
growth forecast further, as lockdown restrictions extended
through April and tentative economic re-openings drag on a
return to business, trade and spending. The Philippine peso PHP=PH weakened 0.5% to see its worst
session in two weeks as several media outlets reported https://www.nytimes.com/2020/05/15/world/asia/typhoon-vongfong-philippines-luzon.html
a severe Typhoon Vongfong was moving toward the main island of
Luzon, forcing people to flee to evacuation centres.
The Indonesian rupiah IDR= firmed slightly after declining
0.3% earlier in the session. It was set to post a weekly gain of
0.4%.
Data showed Indonesia logged a trade deficit in April after
two straight months of surpluses as exports and imports
continued to shrink due to disruption caused by the virus
crisis. The following table shows rates for Asian currencies against
the dollar at 0600 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 107.230 107.24 +0.01
Sing dlr 1.424 1.4232 -0.08
Taiwan dlr 29.903 29.948 +0.15
Korean won 1230.100 1228 -0.17
Baht 32.060 32.11 +0.16
Peso 50.735 50.48 -0.50
Rupiah 14825.000 14840 +0.10
Rupee 75.525 75.56 +0.05
Ringgit 4.343 4.338 -0.12
Yuan 7.102 7.0940 -0.11
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 107.230 108.61 +1.29
Sing dlr 1.424 1.3444 -5.62
Taiwan dlr 29.903 30.106 +0.68
Korean won 1230.100 1156.40 -5.99
Baht 32.060 29.91 -6.71
Peso 50.735 50.65 -0.17
Rupiah 14825.000 13880 -6.37
Rupee 75.525 71.38 -5.49
Ringgit 4.343 4.0890 -5.85
Yuan 7.102 6.9632 -1.95