* Chinese yuan sole gainer on strong midpoint fix
* Philippine peso drops as Sept trade deficit widens
* Markets await clarity on Sino-U.S. tariff concessions
(Adds text, updates prices)
By Ambar Warrick
Nov 6 (Reuters) - Most emerging Asian currencies eased on
Wednesday with the Thai baht dropping ahead of a central bank
policy rate decision, while the Chinese yuan firmed below 7 per
dollar after the People's Bank of China fixed the daily midpoint
at its strongest level for three months.
Regional markets tested gains made earlier in the week as
investors awaited concrete details from the Sino-U.S. trade
front, with a report suggesting that the United States was
considering certain tariff concessions on China. MKTS/GLOB
China is also insisting that the United States remove
tariffs imposed in September as a part of the "phase one" trade
deal, which is expected to be signed this month at a
yet-to-be-determined location. "Market sentiment has turned a bit more tentative on latest
trade war news," OCBC said in a note to clients, adding that if
Chinese insistence for concessions represented a "hardened
stance," then the chances of a deal were less likely than
markets expected.
The Philippine peso PHP= fell 0.32%, leading losses among
its peers after data showed that Philippine's trade deficit
widened in September from the prior month. Markets however, expect a rebound in the country's
third-quarter GDP, according to a Reuters poll. The reading is
due on Thursday. The Indonesian rupiah IDR=ID dipped 0.25%, with the
currency holding at a level of about 14,000 a dollar.
The country's vice finance minister on Wednesday said the
government will support economic growth using the state budget,
following a weak GDP reading on Tuesday. Bucking the trend, the Chinese yuan CNY=CFXS rose about
0.13% after the People's Bank of China set its yuan midpoint at
a three-month high.
The currency was also trading below its crucial 7 to a
dollar level, having marked strong gains on the perceived
progress in Sino-U.S. trade negotiations. CNY/
THAI BAHT
Thailand's baht THB=TH fell about 0.23%, ahead of a
central bank policy rate decision expected at 0705 GMT.
A slim majority of economists expect the bank to hold its
benchmark interest rate unchanged, according to a Reuters poll.
The bank had unexpectedly cut rates in August to shore up
inflation and to rein in a robust baht, which weighs on the
country's key exports. "Despite benign inflation and worsening growth, the balanced
macro-economic case for a rate cut is somewhat less urgent, as
fiscal stimulus buys time," Mizuho said in a note to clients.
"Nonetheless, another cut by end-2019 is not ruled out; in
particular if there are delays in infrastructure investment
projects or the exports slump worsens unexpectedly."
The baht is the best performing emerging Asian currency to
date.
The following table shows rates for Asian currencies against
the dollar on Wednesday.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0515 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.060 109.15 +0.08
Sing dlr 1.358 1.3581 +0.01
Taiwan dlr 30.375 30.371 -0.01
Korean won 1157.600 1157.5 -0.01
Baht 30.250 30.18 -0.23
Peso 50.600 50.44 -0.32
Rupiah 14000.000 13965 -0.25
Rupee 70.888 70.69 -0.28
Ringgit 4.134 4.129 -0.12
Yuan 6.996 7.0058 +0.15
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 109.060 109.56 +0.46
Sing dlr 1.358 1.3627 +0.35
Taiwan dlr 30.375 30.733 +1.18
Korean won 1157.600 1115.70 -3.62
Baht 30.250 32.55 +7.60
Peso 50.600 52.47 +3.70
Rupiah 14000.000 14375 +2.68
Rupee 70.888 69.77 -1.58
Ringgit 4.134 4.1300 -0.10
Yuan 6.996 6.8730 -1.75