* S.Korean won strengthens most
* Malaysia 2020 budget awaited
* World Bank cuts Philippines growth forecast
(Adds text, updates prices)
By Shreya Mariam Job
Oct 11 (Reuters) - Most Emerging Asian currencies
strengthened on Friday as signs of progress in top-level
negotiations between China and the United States spurred hopes
that the two sides were moving towards a limited deal.
U.S. President Donald Trump on Thursday described the talks
as "very, very good," while a White House official said they
were "probably better than expected", comforting markets that
had been embroiled in uncertainty in the lead up to the meeting.
"Investors are ready to celebrate any form of a U.S.-China
trade deal, even a limited one, after having endured
trade-related turmoil since May," Han Tan, market analyst at
FXTM, said in a note.
The improvement in sentiment pushed the trade-sensitive
South Korean won KRW=KFTC 0.7% higher to a more than
three-week peak.
The won is the worst performing Asian currency this year,
weighed down by the Sino-U.S. trade conflict and South Korea's
trade tussle with Japan.
"Investors are cognizant that a trade pact that marks a
pause in tariff hikes without rolling back any of the tariffs
imposed since last year would not solve all of the global
economy's existing problems," Tan said.
President Trump has said that U.S. tariffs on $250 billion
worth of Chinese goods would rise to 30% from 25% on Oct. 15, as
planned, if no progress is made in the ongoing negotiations.
The Philippine peso PHP= reversed from gains earlier in
the session to trade slightly lower.
The World Bank on Thursday cut its forecasts for economic
growth in the Philippines for 2019 and the next two years,
citing external problems, including the U.S.-China trade war,
and a slowdown in public investments. Financial markets in Taiwan were closed for a holiday.
MALAYSIAN BUDGET AWAITED
The Malaysian ringgit MYR= ticked up ahead of the
country's budget due later in the day.
In August, the country's finance minister had said that
Malaysia may consider an expansionary budget for 2020 to
mitigate the effects of the trade war between the United States
and China. "It's going to be difficult for the economy to continue to
outperform as global headwinds are getting stronger and this
demands greater policy support," ING had said in a note last
week.
"We don't see them backtracking on the fiscal goals, though
the planned 3% of GDP deficit for 2020 sounds optimistic for
now."
Data released earlier in the day showed the country's August
factory output rose 1.9%, slightly below the 2% expansion
forecast in a Reuters poll.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0612 GMT
Currency Latest bid Previous day Pct Move
Japan yen 107.980 107.96 -0.02
Sing dlr 1.374 1.3746 +0.01
Korean won 1188.000 1196.2 +0.69
Baht 30.410 30.385 -0.08
Peso 51.590 51.55 -0.08
Rupiah 14140.000 14145 +0.04
Rupee 71.028 71.07 +0.06
Ringgit 4.183 4.187 +0.10
Yuan 7.107 7.1150 +0.12
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 107.980 109.56 +1.46
Sing dlr 1.374 1.3627 -0.85
Taiwan dlr 30.850 30.733 -0.38
Korean won 1188.000 1115.70 -6.09
Baht 30.410 32.55 +7.04
Peso 51.590 52.47 +1.71
Rupiah 14140.000 14375 +1.66
Rupee 71.028 69.77 -1.77
Ringgit 4.183 4.1300 -1.27
Yuan 7.107 6.8730 -3.29