* S. Korean won leads gains
* Taiwan dollar strengthens for fourth straight day
* Singapore Nov exports slide 5.9%
(Adds text, updates prices)
By Shriya Ramakrishnan
Dec 17 (Reuters) - The South Korean won firmed sharply on
Tuesday, supported by easing trade tensions with Japan and
strong demand for local chip stocks, while most other Asian
currencies were subdued as investors sought clarity on the
Sino-U.S. trade deal.
Leading gains in the region, the won KRW=KFTC rose 0.6% to
its strongest level since Nov.18. The move was in tandem with
the domestic equity benchmark index .KS11 , where chipmakers
such as Samsung Electronics 005930.KS and SK Hynix 000660.KS
logged robust gains.
A recovery in the semiconductor industry, receding fears of
the Sino-U.S. trade war and hopes of a reconciliation between
Japan and South Korea supported risk-on proxies like the won,
Christopher Wong, senior FX Strategist at Maybank Singapore
said.
Japan and South Korea on Monday said they had reached
"common ground" in their first trade talks since Tokyo imposed
curbs on exports of high-technology materials to South Korea.
"Inventory drawdowns as well as improving demand environment
led by increase in orders for 5G network deployment, cloud
providers and Internet of Things supports a cyclical recovery
story," Wong said, referring to the gains in chipmakers.
Among other regional currencies, the Taiwan dollar TWD=TP
strengthened 0.4%, with analysts attributing the gain to an
improved growth and export outlook for the trade-reliant island
due to reshoring.
The Chinese yuan CNY=CFXS was marginally lower.
While Washington has touted the Sino-U.S. trade deal, saying
it has been "absolutely completed", Chinese officials have been
more cautious, emphasizing that the trade dispute has not been
completely settled. The Thai baht THB=TH and Philippine peso PHP= weakened
0.2% and 0.1%, respectively.
Markets will now focus on the Bank of Thailand's policy
meeting on Wednesday, where it is widely expected to leave its
benchmark interest rate at a record low after two cuts this
year, a Reuters poll showed. The Singapore dollar SGD= wavered between positive and
negative territory. Data earlier in the day showed the
city-state's exports fell again in November, pressured by an
extended decline in electronics and pharmaceutical shipments.
VS U.S. DOLLAR
Change on the day at 0609 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.560 109.49 -0.06
Sing dlr 1.354 1.3544 +0.01
Taiwan dlr 30.148 30.263 +0.38
Korean won 1164.800 1172.3 +0.64
Baht 30.265 30.22 -0.15
Peso 50.600 50.54 -0.12
Rupiah 14000.000 14000 +0.00
Rupee 70.970 70.99 +0.03
Ringgit 4.140 4.14 +0.00
Yuan 6.998 6.9949 -0.05
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 109.560 109.56 +0.00
Sing dlr 1.354 1.3627 +0.62
Taiwan dlr 30.148 30.733 +1.94
Korean won 1164.800 1115.70 -4.22
Baht 30.265 32.55 +7.55
Peso 50.600 52.47 +3.70
Rupiah 14000.000 14375 +2.68
Rupee 70.970 69.77 -1.69
Ringgit 4.140 4.1300 -0.24
Yuan 6.998 6.8730 -1.79