Asian monies mostly up late

Asian monies mostly up late

Irene Kwek, Singapore, Dow Jones

Asian currencies were mostly higher late Monday on a
relatively stable Japanese yen, while optimism following a
cabinet reshuffle in Taiwan helped lift the New Taiwan dollar.

The Thai baht ended marginally down as participants waited for
the results of a central bank policy meeting later in the day.
Around 1030 GMT (4.30 pm Jakarta time) or after the close of
local trading, the Thai central bank announced a cut in its key
14-day repurchase rate to 2.00 percent from 2.25 percent.

Trade was generally thin and range-bound as a holiday in the
U.S. Monday to mark Martin Luther King Day robbed the regional
markets of direction and sapped volume, dealers said.

The New Taiwan dollar benefited from a rally in stocks and a
relatively stronger yen.

Taiwan shares soared 4.98 percent amid expectations that the
new cabinet will revitalize the local economy.

At 0947 GMT, the local unit was slightly higher at NT$35.010
to the U.S. dollar, compared with NT35.025 Friday.

However, the central bank was reportedly in the market
limiting the gains in the local dollar, amid fears that a too
strong New Taiwan dollar would hurt the country's export
competitiveness.

Earlier Monday, Taiwan's President Chen Shui-bian appointed
presidential aide Yu Shyi-kun as the island's new premier, the
No. 3 ranking leader.

Yu replaced Chang Chun-hsiung, a former lawmaker who held the
job for more than a year as the economy slipped into recession
for the first time in decades. Yu named Lin Hsin-i, former head
of the Ministry of Economic Affairs, as vice premier.

The Singapore dollar strengthened to S$1.8336 against the U.S.
unit late in the day.

On Friday, the U.S. dollar was at S$1.8367. Like most Asian
currencies, the Singapore unit has been taking its cue from the
yen, which was largely direction less, rising against the U.S.
unit as overseas players and Japanese exporters used Monday's
U.S. holiday as an opportunity to take profits.

Late Monday in Asia, the dollar was at 132.40 yen, compared
with 132.55 yen late Friday in New York, and 132.88 yen late
Friday in Tokyo.

The South Korean won was also supported by the stable yen, and
finished flat in quiet trade.

The dollar ended at 1,320.4 won, compared with Friday's
1,320.5 won.

Mansoor Mohi-uddin, a regional currency strategist at UBS
Warburg, said the won remains relatively weak at the moment as
South Korea is seen to be the most responsive to world growth.
Any changes in the perception of world growth will affect the
outlook for South Korea, and therefore the won.

Mansoor added that the extent of foreign selling of Korean
equities represents a downside risk for the won. For the 10th
session running, foreigners sold South Korean shares, unloading a
net 76.2 billion won Monday.

The Philippine peso ended higher on improved investor
sentiment toward the country's economy, especially in light of
recent data that indicate benign inflation.

A rally in local shares also gave the peso a boost, as
portfolio investors were putting fresh funds into the stock
market in anticipation of an acceleration in economic growth.

The Philippine Stock Exchange Index closed 2.6 percent higher
to end at 1,290.63, its highest closing level since the day
before the Sept. 11 terror attacks in the U.S.

"The macroeconomic fundamentals are looking very positive ...
with revenue figures above expectations for the last few months
and the stable political situation," said James Malcolm, currency
strategist with JP Morgan.

He added that the interest rate differential is very high, "so
the interest rate gains are tremendously attractive relative to
Thailand, where interest rates are so low and isn't an attractive
carry trade."

Thailand's central bank, which announced its interest rate cut
after the market close, said the rate cut was an effort to
harmonize monetary and fiscal policies in order to stimulate
economic growth. However, the central bank cautioned that the
rate cut may result in a weaker baht, but it would stimulate
export growth.

The baht ended slightly lower at 43.945 bath to the dollar in
quiet trade, compared with 43.93 bath Friday as market
participants kept to the sidelines during the day to await the
bank's decision.

The dollar is expected to break above 44.00 bath with
resistance at 44.05-44.10, bath dealers said.

Elsewhere, the Indonesia rupiah ended the day slightly higher
as fears of protests over a recent fuel price hike subsided,
traders said.

The dollar ended at Rp 10,385, lower than Rp 10,390 at the
close of Asian trade Friday.