* Won set to snap 6 sessions of gains
* Peso weakens up to 0.3%
* Baht gains on surprise April factory output growth
(Adds text, updates prices)
By Aby Jose Koilparambil
May 28 (Reuters) - Most Asian currencies weakened on Tuesday
after U.S. President Donald Trump reinforced Washington's hard
stance in its trade dispute with China, dampening market
sentiment.
In the absence of any key drivers from U.S. markets, which
were shut on Monday for a holiday, emerging Asian currencies
fell back on the underlying theme of Sino-U.S. trade tensions
that have roiled global financial markets for months.
Trump, who is on a visit to Japan, told a news conference in
Tokyo that Washington was not ready to make a deal with Beijing
but he expected one in the future. "The markets continue to be weighed down by concerns about
the trade war as there is no positive news on that front," said
Irene Cheung, senior strategist for Asia at ANZ Banking Group
(Singapore).
Cheung added that economic data from Asia, which is
dependent on exports, remains negative and the trade war has
caused countries in the region to experience huge outflows.
The appreciation of the dollar .DXY , which gained 0.2%
against a basket of six peers, also put some pressure on the
emerging market currencies.
The South Korean won KRW=KFTC led the losers, weakening as
much as 0.4% and is set to snap a 6-session winning streak.
Analysts at OCBC Bank said in a research note that if the
market refocuses on trade issues, the won might "revisit recent
lows" as the Bank of Korea was "not expected to put in a hawkish
shift" in its monetary policy meeting on Friday.
The won is the worst regional performer so far this year,
having lost more than 6%.
The Philippine peso PHP= also declined, losing as much as
0.3%, while the Chinese yuan CNY=CFXS and the Malaysian
ringgit MYR=MY shed up to 0.2% each.
The Indian rupee INR=IN weakened as much as 0.3% after
gaining for two straight sessions following the resounding
victory of Prime Minister Narendra Modi's ruling party in the
general elections, handing him a second term in office.
The Singapore dollar SGD= and the Taiwan dollar TWD=TP
eased slightly.
BAHT GAINS
Bucking the trend, the Thai baht THB=TH appreciated
slightly before paring gains as the country's April factory
output unexpectedly rose 2.03% from a year earlier. Thailand's manufacturing production index for April, which
was released on Tuesday, rose unexpectedly, led by higher
production of cars and air conditioners.
The data compares with a forecast fall of 1.0% in a Reuters
and against a revised 2.66% decline in March.
The following table shows rates for Asian currencies against
the dollar at 0537 GMT.
CURRENCIES VS U.S. DOLLAR
Japan yen 109.530 109.5 -0.03
Sing dlr 1.377 1.3750 -0.14
Taiwan dlr 31.468 31.450 -0.06
Korean won 1188.500 1184.5 -0.34
Baht 31.790 31.82 +0.09
Peso 52.240 52.15 -0.17
Rupiah 14375.000 14375 +0.00
Rupee 69.643 69.50 -0.21
Ringgit 4.189 4.185 -0.10
Yuan 6.906 6.8974 -0.12
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 109.530 109.56 +0.03
Sing dlr 1.377 1.3627 -1.03
Taiwan dlr 31.468 30.733 -2.34
Korean won 1188.500 1115.70 -6.13
Baht 31.790 32.55 +2.39
Peso 52.240 52.47 +0.44
Rupiah 14375.000 14375 +0.00
Rupee 69.643 69.77 +0.18
Ringgit 4.189 4.1300 -1.41
Yuan 6.906 6.8730 -0.47