* Indian rupee sheds 1.2% after extended weekend
* Korean won and Malaysian ringgit shed over 0.4% each
* PBOC's firmer-than-expected fix cushions yuan's fall
(Adds text, updates prices)
By Rashmi Ashok
Sept 3 (Reuters) - Most emerging Asian currencies weakened
against a sturdy dollar on Tuesday as investors fretted over the
outcome of Sino-U.S. trade talks, while weak economic data sent
the Indian rupee tumbling.
Late on Monday, Bloomberg News reported that Chinese and
U.S. officials are struggling to agree on a schedule for a round
of trade negotiations that were expected this month.
"Such headlines lay bare the tremendous gulf between the
U.S. and China in reconciling their differences over trade,
leaving the global economy hanging in the balance," Han Tan,
Market Analyst at Cyprus-based brokerage FXTM said.
The news sent the Chinese onshore yuan CNY=CFXS to 7.1825
against the dollar in early trade, its weakest since February,
2008.
However, People's Bank of China set its official mid-point
fix at 7.0884 against the dollar, weaker than its previous fix
but at a level stronger than traders expected, limiting the
yuan's fall.
Meanwhile, the dollar .DXY jumped 0.4% to 99.273 against a
basket of six major currencies by 0532 GMT, stepping up pressure
on Asian units.
The Indian rupee INR=IN and the Malaysian ringgit MYR=
were the worst performers in the region, playing catch up with
peers as both markets re-opened for trade after a holiday on
Monday.
The rupee plunged 1.2% in tandem with its stock markets as
investors priced in data released late on Friday which showed
that its economy grew at its weakest pace since 2013 between
April and June. A private sector survey also pointed to weakness in its
manufacturing sector in August, as demand and output grew at
their weakest pace in a year and cost pressures increased.
Economists said the chances of the Reserve Bank of India
cutting interest rates were increasing.
"We now expect another 15-25 bp rate cut in December,"
Radhika Rao, economist at DBS Group Research wrote in a note on
Monday.
"USDINR continues to watch CNY movements and broader dollar
bias, which at this juncture points towards further INR weakness
owing to a weak global environment," Rao added.
Logging a fall of about 3.4%, the rupee is the region's
worst performer this year after the Korean won KRW=KFTC and
the yuan.
The following table shows rates for Asian currencies against the
dollar at 0520 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 106.270 106.21 -0.06
Sing dlr 1.393 1.3911 -0.16
Taiwan dlr 31.412 31.402 -0.03
Korean won 1215.700 1210.8 -0.40
Baht 30.640 30.635 -0.02
Peso 52.280 52.28 +0.00
Rupiah 14225.000 14190 -0.25
Rupee 72.250 71.40 -1.18
Ringgit 4.223 4.203 -0.47
Yuan 7.182 7.1717 -0.14
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 106.270 109.56 +3.10
Sing dlr 1.393 1.3627 -2.20
Taiwan dlr 31.412 30.733 -2.16
Korean won 1215.700 1115.70 -8.23
Baht 30.640 32.55 +6.23
Peso 52.280 52.47 +0.36
Rupiah 14225.000 14375 +1.05
Rupee 72.250 69.77 -3.43
Ringgit 4.223 4.1300 -2.20
Yuan 7.182 6.8730 -4.30