* Rupiah gains on new Indonesian cabinet
* Rupee propped up by improved sentiment, equity market
recovery
* South Korean won touches near-four month high against
dollar
(Adds text, updates prices)
By Nikhil Nainan
Oct 22 (Reuters) - Trade-exposed Asian currencies got some
support on Tuesday from upbeat comments on the progress of
U.S.-China trade negotiations, but other units were capped by
cautious investor sentiment.
Both the United States and China said talks on resolving
their bitter trade war were progressing with White House adviser
Larry Kudlow adding that tariffs scheduled for December could be
withdrawn. South Korea's won KRW=KFTC and the Taiwan dollar TWP=TP
each strengthened 0.1%, having eased off earlier highs. The won
had climbed to its strongest level in nearly four months.
Sentiment remains cautious given the unpredictable nature of
the talks between the two countries in the past.
"We had been here before," Zhu Huani, a Singapore-based
economist with Mizuho Bank wrote in a note.
She cited the abrupt end to talks in May when things were
reportedly going well, and that a partial deal may not address
slowing global growth.
The rupee INR=IN is set for its fourth session of gains,
advancing 0.3% to 70.955 against the dollar.
"Markets anticipate another rate cut by the Fed which will
make high-yielding currencies more attractive, which is helping
the rupee pull some gains," said Khoon Goh, ANZ's head of Asia
research, referring to next week's Federal Reserve policy
meeting.
The equity market in India has also been on the upside,
boosted by government measures to shore up the stuttering
economy.
Barclays expects further near term consolidation in the
rupee due to improved risk sentiment and resumption of foreign
investor equity purchases.
Elsewhere, the Malaysian ringgit MYR= eased 0.1% as
worries mount over the potential impact of a call by India's top
vegetable body to stop buying the edible oil from the Southeast
Asian country. In 2018, India was Malaysia's third-largest export
destination and vegetable oil contributed 2.8% of Malaysia's
gross domestic product and 4.5% to total exports last year.
RUPIAH
Indonesia's rupiah IDR= gained the most in the region, up
0.5% against the dollar as markets took a positive view of the
country's new cabinet.
The make-up of the cabinet was being closely watched to see
how many technocrats - who are more likely to fall in with
President Joko Widodo's plans for boosting growth and investment
- were included. Widodo asked opposition leader Prabowo Subianto to join his
new cabinet, and also tapped co-founder of tech start-up Gojek
and a former chairman of Inter Milan for posts. The country's central bank will decide on Thursday whether
to cut rates for a fourth straight month, with a majority of
those polled by Reuters expecting one. VS U.S. DOLLAR
Change on the day at 0527 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.630 108.59 -0.04
Sing dlr 1.361 1.3608 -0.04
Taiwan dlr 30.566 30.592 +0.09
Korean won 1170.600 1172 +0.12
Baht 30.290 30.25 -0.13
Peso 51.160 51.08 -0.16
Rupiah 14000.000 14073 +0.52
Rupee 70.955 71.14 +0.26
Ringgit 4.183 4.18 -0.07
Yuan 7.076 7.0750 -0.02
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.630 109.56 +0.86
Sing dlr 1.361 1.3627 +0.10
Taiwan dlr 30.566 30.733 +0.55
Korean won 1170.600 1115.70 -4.69
Baht 30.290 32.55 +7.46
Peso 51.160 52.47 +2.56
Rupiah 14000.000 14375 +2.68
Rupee 70.955 69.77 -1.67
Ringgit 4.183 4.1300 -1.27
Yuan 7.076 6.8730 -2.87