* Uncertainty over fast-spreading coronavirus lingers
* China March factory activity unexpectedly expands
* Malaysian ringgit leads gains; S.Korean won up 0.5%,
* Recovery will need more than one day of decent data -
analyst
(Adds text, updates prices)
By Shriya Ramakrishnan
March 31 (Reuters) - Most Asian currencies ticked higher on
Tuesday after a key survey showed factory activity in China
returned to growth, even though the global coronavirus crisis
showed little signs of slowing.
Factory activity in China unexpectedly expanded in March
after contracting sharply to a record low in the previous month,
but the rapid global spread of the coronavirus is expected to
keep businesses and the overall economy under heavy pressure as
foreign demand slumps. "Recoveries in beleaguered Asian currencies will need more
than one day of decent data to move the sentiment needle after a
torrid two-months," Jeffrey Halley, senior market analyst, Asia
Pacific at OANDA, said in a note.
The data provided a slight lift to the onshore Chinese yuan
CNY=CFXS , which gained as much as 0.2% to 7.086 against the
greenback.
The South Korean won KRW=KFTC advanced 0.5%, in tandem
with gains in the domestic equity market. .KS11
While central banks and governments around the world have
stepped in with a slew of stimulus measures to calm frayed
nerves, fears of a deep recession persist as most economies have
entered lockdowns and cut growth forecasts for the year.
"The economic downgrades are happening everywhere, so
to that extent, we are starting to see a coronavirus divergence
trade rather than a yield cover conference trade," Stephen
Innes, chief global markets strategist at AxiCorp, said.
"Investors are buying currencies where they think the virus
will pass quicker as a result of containment measures."
The Malaysian ringgit MYR= led gains in the region,
strengthening 0.6% against the dollar. The local currency
benefited from a slight uptick in crude prices, with Malaysia
being a net exporter of oil. O/R
The Southeast Asian nation expects its fiscal deficit to
widen to 4% of gross domestic product this year because of the
$58 billion stimulus measures announced to counter the
pandemic's economic impact. The Indian rupee INR=IN rose marginally amid concerns over
a continued spike in coronavirus cases. India reported 1,251
confirmed cases by Monday evening, up 227 from the previous day,
its steepest single-day rise. The Indonesian rupiah IDR=ID was nearly flat, while the
Thai baht THB=TH edged up.
Thailand's finance minister on Monday said the new stimulus
package to alleviate the impact of the pandemic would be worth
more than 500 billion baht ($15.32 billion), while the central
bank said it had further expanded the scope of liquidity
support. VS U.S. DOLLAR
Change on the day at
0522 GMT
Currency Latest bid Previous Pct
day Move
Japan yen 108.290 107.81 -0.44
Sing dlr 1.424 1.4234 -0.06
Taiwan dlr 30.231 30.250 +0.06
Korean won 1218.700 1224.4 +0.47
Baht 32.630 32.67 +0.12
Peso 50.780 50.85 +0.14
Rupiah 16315.000 16325 +0.06
Rupee 75.585 75.65 +0.09
Ringgit 4.298 4.325 +0.63
Yuan 7.088 7.0975 +0.13
Change so far in 2020
Currency Latest bid End 2019 Pct
Move
Japan yen 108.290 108.61 +0.30
Sing dlr 1.424 1.3444 -5.61
Taiwan dlr 30.231 30.106 -0.41
Korean won 1218.700 1156.40 -5.11
Baht 32.630 29.91 -8.34
Peso 50.780 50.65 -0.26
Rupiah 16315.000 13880 -14.92
Rupee 75.585 71.38 -5.56
Ringgit 4.298 4.0890 -4.86
Yuan 7.088 6.9632 -1.76
($1 = 32.6400 baht)