EM ASIA FX-Spain rating, US earnings lift Asian FX; intervention seen

* Philippine peso up; intervention spotted below 41.20

* Singapore c.bank spotted buying U.S. dlr below 1.2180

* Taiwan dlr at 5-mth high on foreign financial inflows

(Adds text, updates prices)

By Jongwoo Cheon

SINGAPORE, Oct 17 (Reuters) - Emerging Asian currencies led

by the Korean won and the Philippine peso hit new highs on

Wednesday as concerns over the global economy eased after strong

U..S. corporate earnings and a credit ratings affirmation for

Spain.

Traders said the potential for further gains was limited,

with central banks seen as stepping into the market to stem the

rise of the currencies, which make exports more expensive.

The South Korean won hit a one-year high, while

the Taiwan dollar climbed a five-month peak on inflows

from foreign financial inflows.

The Philippine peso reached its highest in more

than five and half years, but it gave up some of the gains after

the central bank was spotted buying dollars, traders said.

The Singapore dollar barely moved on similar

intervention by the authority, dealers said.

Asian stocks also rose on Wednesday, boosted by Moody's

decision to retain Spain's investment grade rating, assuaging

widespread fears that it would be cut to junk status.

Strong earnings from U.S. firms also improved risk appetite.

"The positive sentiment appears to be sustained," said

Frances Cheung, senior strategist at Credit Agricole CIB in Hong

Kong.

"However, Asian policy makers may not want to see their

currencies too strong. I expect them to jump into the market

trying to cap currency strength," she added.

Emerging Asian countries heavily rely on exports and the

recent slowing global economy, especially China, has kept

investors from chasing regional assets including currencies.

The risk sentiment is likely to depend on China's

third-quarter growth due on Thursday.

Still, Credit Agricole's Cheung said slowing growth in the

world's second-largest economy may not much deter a firm trend

in emerging Asian currencies.

"There could be downside risk from China GDP, but the data

may not be very worrying, given China's recent yuan-fixing,"

Cheung said.

The People's Bank of China has been fixing the yuan's

mid-point firmer, helping the currency hit record highs, even

though its economy has cooled.

TAIWAN DOLLAR

The Taiwan dollar strengthened to 29.142 to the U.S. dollar,

its highest since May 2 on inflows from foreign financial

institutions.

Its upside was limited as the island's importers including

oil companies bought greenbacks, dealers said.

The central bank was spotted intervening to stem the Taiwan

dollar's strength, but its U.S. dollar bids were not that

strong, they added.

WON

The won advanced for a fifth consecutive session to hit

1,103.3 per dollar, its strongest since Oct. 31.

The South Korean currency is seen heading to the previous

peak of 1,100, given improving risk appetite, but investors

stayed cautious over possible dollar-buying intervention by the

foreign exchange authorities.

Importers bought dollars for payments on dips, while some

offshore funds took profits.

"We may see the 1,100. But not that soon. Exporters are not

active enough to push the won there," said a foreign bank dealer

in Seoul.

PHILIPPINE PESO

The Philippine peso jumped to 41.160 to the dollar, its

strongest since March 2008, on remittance inflows and solid

economic fundamentals.

The peso found some resistance as the central bank was

spotted buying greenbacks below 41.20, prompting offshore funds

and interbank speculators to chase dollars, dealers said.

But some dealers saw the peso's retreat as opportunities to

buy the local unit on dips.

"Market sentiment is still to sell the dollar on rallies. So

any bounce to 41.30 would be a chance to either reinstate or add

on to short-dollar positions," said a foreign bank dealer in

Manila.

RINGGIT

The ringgit hit 3.0390 per dollar, its firmest since Sept.

14, as interbank speculators chased the local currency, tracking

a firm euro and other risky assets.

Still, the Malaysian unit could not extend gains as the

Singapore dollar was capped by spotted intervention.

SINGAPORE DOLLAR

The Singapore dollar barely changed as the central

bank was spotted buying U.S. dollar to stem the local unit's

strength, dealers said.

Agent banks of the Monetary Authority of Singapore were seen

preventing the city-state's currency from strengthening past

1.2180 to the greenback, according to dealers.

The intervention came as Singapore reported a surprise drop

in non-oil domestic exports in September, disappointing market

expectations of a slight growth.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0650 GMT

Currency Latest bid Previous day Pct Move

Japan yen 78.69 78.89 +0.25

Sing dlr 1.2181 1.2189 +0.07

Taiwan dlr 29.168 29.289 +0.41

Korean won 1104.71 1107.20 +0.23

Baht 30.60 30.68 +0.25

Peso 41.17 41.33 +0.39

Rupiah 9580.00 9580.00 +0.00

Rupee 52.76 52.87 +0.21

Ringgit 3.0400 3.0520 +0.39

Yuan 6.2536 6.2640 +0.17

Change so far in 2012

Currency Latest bid End prev year Pct Move

Japan yen 78.69 76.92 -2.25

Sing dlr 1.2181 1.2969 +6.47

Taiwan dlr 29.168 30.290 +3.85

Korean won 1104.71 1151.80 +4.26

Baht 30.60 31.55 +3.10

Peso 41.17 43.84 +6.49

Rupiah 9580.00 9060.00 -5.43

Rupee 52.76 53.08 +0.61

Ringgit 3.0400 3.1685 +4.23

Yuan 6.2536 6.2940 +0.65

(Additional reporting by Jeanny Kao in TAIPEI and IFR Markets'

Catherine Tan; Editing by Sanjeev Miglani)

Source: http://news.yahoo.com/em-asia-fx-spain-rating-us-earnings-lift-074721612--finance.html

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