FOREX-Yen gains, yuan falls as Hong Kong tensions heighten risk aversion

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Worries about U.S.-China relations boost safe havens
* Hong Kong human rights bill could hamper trade war
* U.S. economic data to limit dollar's downside

By Stanley White
TOKYO, Nov 28 (Reuters) - The safe-haven yen rose and
risk-sensitive currencies fell on Thursday after U.S. President
Donald Trump's formal endorsement of Hong Kong's anti-government
protesters, seen as potentially derailing recent Sino-U.S.
progress on trade.
On Wednesday, Trump signed into law congressional
legislation that supported the protesters despite angry
objections from Beijing. That pushed the offshore yuan lower on
worries it would worsen already fractious relations between the
United States and China.
The Swiss franc and gold also rose on Thursday as investors
sought other safe harbours due to concerns about a potential
increase in geopolitical risk.
In response to the U.S. move, China's foreign ministry said
it resolutely opposed the law and threatened to take firm
counter-measures, complicating efforts to scale back a 16-month
long trade war between the world's two-largest economies.
"The yen is being bought because of the news about Trump
signing the Hong Kong bill," said Yukio Ishizuki, foreign
exchange strategist at Daiwa Securities in Tokyo.
"Algorithmic trading could push the yen up further, but the
dollar's losses will be limited because we've had positive U.S.
economic data, which has lifted sentiment."
The yen JPY=EBS rose 0.12% to 109.42 versus the dollar on
Thursday, rebounding from a six-month low reached Wednesday
after U.S. economic growth was revised up in the third quarter.
The Australian dollar AUD=D3 , which is often traded as a
proxy for global commodity demand, fell to a six-week low of
$0.6764.
In the offshore market, the yuan CNH=D3 fell 0.18% to
7.0269 per dollar. In the onshore market, the yuan CNY=CFXS
was little changed at 7.0280 versus the greenback.
China's foreign ministry also said on Thursday that U.S.
attempts to interfere in Hong Kong are "doomed to fail."
The U.S. bill signed on Wednesday requires the State
Department to certify, at least annually, that Hong Kong retains
enough autonomy to justify favourable U.S. trading terms, which
have helped it maintain its position as a global financial hub.
The law also threatens sanctions for human rights violations
in Hong Kong, which has been rocked by months of civil unrest in
response to what protesters say is an erosion of freedoms since
reverting to Chinese rule in 1997. Beijing has denied any undue influence and has blamed
foreign governments for meddling in Hong Kong's affairs.
Many see the U.S. legislation as symbolic, but it has the
potential, if implemented, to further rock relations between the
United States and China.
Washington's rebuke also comes as U.S. and Chinese
negotiators are trying to reach an agreement to de-escalate a
trade war, which would remove a huge headwind from the global
economic outlook.
The United States and China have imposed tariffs on each
other's goods in a prolonged dispute over Chinese trade
practices that the U.S. government says is unfair.
Investor uncertainty benefited the Swiss franc CHF=EBS ,
which pulled back from a two-month low to trade at 0.9990
against the greenback.
Gold XAU= , another safe haven bought in times of
uncertainty, rose 0.16% to $1,456.66 per ounce.
The rise in safe havens undermined the dollar, which came
into Asian trade on a high after revised data showed U.S.
economic growth picked up slightly in the third quarter.
Separate data showed new orders for key U.S.-made capital
goods increased by the most in nine months in October and
shipments rebounded.