EMERGING MARKETS-Asian FX rise on Xi-Biden talks, yuan hits 5-month peak

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    * China's yuan hits 5-month peak
    * Indonesia, Philippine c.banks to hold rates - Businesshala
polls
    * Thai stocks up for 4th day

    By Arundhati Dutta
    Nov 16 (Businesshala) - Most emerging Asian currencies rose on
Tuesday as traders were encouraged by positive developments in
talks between Chinese Premier Xi Jinping and U.S. President Joe
Biden, with the South Korean won hovering at its strongest level
in two weeks.
    Jinping and Biden opened talks warmly and stressed their
responsibility to avoid conflict. They are expected to discuss a
range of issues including tariffs on China imposed by former
U.S. President Donald Trump.
    Against the backdrop, China's yuan hit its
highest in more than five months. The Thai baht and the
Singapore dollar firmed 0.1% each, while the South Korean
won rose as much as 0.3%.
    "Expect some sort of loose agreement to get reparations of
trade relations back on track, and at best agreeing to disagree
on issues surrounding Taiwan, South China Sea and Hong Kong,"
said Vishnu Varathan, an analyst at Mizuho, in a note.
    Maybank analysts said the yuan's resilience seemed to be
"anchoring stability" among Asian emerging market currencies.
    In the stock market, the Jakarta benchmark was up
0.6% to lead gains and was on track for its best day in a week. 
  
    The Indonesian rupiah swung between small gains and
losses as investors awaited Bank Indonesia's (BI) policy meeting
on Thursday. The central bank is expected to keep interest rates
unchanged to aid an economic recovery from the COVID-19
pandemic, according to a Businesshala poll.
    Goldman Sachs analysts did not expect BI to start unwinding
pandemic-era policy until next year, according to a research
note over the weekend.
    "Improving activity, rising inflation and U.S. Federal
Reserve policy tightening are likely to push BI to normalize
policy settings, starting in the second-quarter of 2022," the
Goldman Sachs analysts said.
    Thai stocks extended gains to a fourth session and
hit their highest in nearly a month after the government on
Monday forecast higher growth for 2021, with more stimulus set
to be introduced.    
    On the downside, losses in local industrial stocks dragged
the Philippine stock benchmark by 0.5%, while the peso
 weakened 0.3%.
    The Philippine central bank is expected to stand pat on
interest rates when it meets on Thursday for a policy review,
according to a separate Businesshala poll.
    Shares in South Korea, Singapore and India
 were flat.
    
    HIGHLIGHTS:
    **Indonesian 10-year benchmark yields are down 0.6 basis
points at 6.182%
    **Malaysia's 10-year benchmark yield is unchanged at 3.562%
    **Aboitiz Equity Ventures and San Miguel Corp
 shed over 2%, each on the Philippine stock exchange
    
    
 Asia stock indexes and currencies at 0440 GMT                                           
 COUNTRY      FX RIC       FX DAILY %   FX YTD %    INDEX    STOCKS DAILY %  STOCKS YTD %
 Japan                          -0.02      -9.55                       0.14          8.65
 China                          +0.16      +2.43                       0.29          2.03
 India                          -0.02      -1.93                      -0.27         29.18
 Indonesia                      +0.00      -1.20                       0.42         11.12
 Malaysia                       +0.02      -3.34                       0.19         -6.26
 Philippines                    -0.30      -4.51                      -0.18          2.65
 S.Korea                        -0.03      -7.86                      -0.16          4.22
 Singapore                      +0.04      -2.34                      -0.01         13.94
 Taiwan                         +0.01      +2.54                       0.10         19.82
 Thailand                       +0.00      -8.44                       0.41         13.53
 

 (Reporting by Arundhati Dutta in Bengaluru; Editing by Ana
Nicolaci da Costa)
  
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