EM ASIA FX- Asian currencies rise as North Korea concerns ease
(Adds details, updates prices) By Shashwat Pradhan May 2 Most Asian currencies climbed against the dollar on Tuesday as a slight easing in tensions over the Korean peninsula offset concerns from a softer-than-expected factory activity in China. U.S. President Donald Trump on Monday opened the door to meeting North Korea's Kim Jong Un, saying he would be honoured to meet the young leader under the right circumstances, even as Pyongyang suggested it would continue its nuclear weapons tests. The comments by Trump, who had warned in an interview with Reuters on Thursday that a "major, major conflict" with North Korea was possible, appeared to mark a shift in tone towards the North Korean leader. It took the edge off weeks of rising tensions on the Korean peninsula and helped push the Korean won up 0.7 percent against the dollar - one of the biggest gainer in Asia on the day. The won was also buoyed by data showing South Korean exports rose at a much faster-than-expected pace in April, surging for a sixth-straight month, aided by strong demand for high-tech memory chips. "Without any military escalation, markets appear biased to buy the Korean won on dips, banking on positive export growth and greater political clarity post-elections next week," Mizuho Bank said in a note. Among other currencies, the Malaysian ringgit appreciated for a fifth-straight day to touch its highest in more than five months. "The Malaysian ringgit has also been a notable outperformer, with markets turning more positive amidst catch-up inflows and a liberalization of the onshore forex forwards market," Mizuho added. The Chinese yuan was little changed after a private survey showed that China's factory sector lost momentum in April, with growth slowing to its weakest pace in seven months as domestic and export demand weakened and commodity prices dipped. Meanwhile, the Japanese yen fell to a one-month low after the dollar was lifted by treasury yields which surged after U.S. Treasury Secretary Steven Mnuchin commented on the possibility of ultra long-term bond issuance. TAIWANESE DOLLAR The Taiwanese dollar firmed as much as 0.8 percent to its strongest level against the dollar since Sept. 2014, supported by a rally in global tech stocks in the wake of rising optimism over the prospects for the technology industry. Gain in global tech stocks accelerated after strong earnings from Alphabet, Amazon and Microsoft last week. The electronic sector is major export earner in Taiwan, and includes companies such as Taiwan Semiconductor Manufacturing , the world's biggest contract chip maker. Data from the Nikkei/Markit Taiwan Purchasing Managers' Index for April showed that Taiwan's April factory growth slipped to a six-month low, but remained solid. The Taiwanese dollar has been the strongest performing currency in Asia this year. The following table shows rates for Asian currencies against the dollar at 0546 GMT. CURRENCIES VS U.S. DOLLAR Currency Latest bid Previous day Pct Move Japan yen 111.970 111.83 -0.13 Sing dlr 1.394 1.3965 +0.18 Taiwan dlr 30.022 30.218 +0.65 Korean won 1129.700 1137.9 +0.73 Baht 34.530 34.59 +0.17 Peso 50.050 49.95 -0.20 Rupiah 13300.000 13327 +0.20 Rupee 64.178 64.24 +0.10 Ringgit 4.326 4.339 +0.30 Yuan 6.896 6.8970 +0.02 Change so far Currency Latest bid End 2016 Pct Move Japan yen 111.970 117.07 +4.55 Sing dlr 1.394 1.4490 +3.95 Taiwan dlr 30.022 32.279 +7.52 Korean won 1129.700 1207.70 +6.90 Baht 34.530 35.80 +3.68 Peso 50.050 49.72 -0.66 Rupiah 13300.000 13470 +1.28 Rupee 64.178 67.92 +5.83 Ringgit 4.326 4.4845 +3.66 Yuan 6.896 6.9467 +0.74 (Reporting by Shashwat Pradhan in Bengaluru)