EM ASIA FX-China factory survey lifts won, Taiwan dlr; SE Asia FX falls

Reuters

* Won hits 8-mth high on stock inflows

* Taiwan dlr at 4-month peak on foreign demand, exporters

* Intervention limits won, Taiwan dlr upside -traders

* Rupiah down on corp dlr demand; c.bank sells dlrs

(Adds details, updates prices)

By Jongwoo Cheon

SINGAPORE, Sept 23 (Reuters) - The South Korean won and the

Taiwan dollar hit multi-month highs on Monday, helped by more

signs of China's economic turnaround, while most emerging Asian

currencies slid on renewed worries that the Federal Reserve will

cut its monetary stimulus.

Growth in China's factory sector accelerated to a six-month

high in September, a preliminary survey showed, as stronger

domestic and foreign demand added to recent signs of a tentative

turnaround in the world's second-largest economy.

The won touched a near eight-month peak on

sustained stock inflows. The Taiwan dollar advanced to

its strongest in more than four months on demand from foreign

financial institutions and exporters.

The Northeast Asian units found further support from

catch-up plays as their financial markets were closed late last

week when the Fed surprised global investors by standing pat,

which boosted regional peers.

In contrast, most Southeast Asian currencies fell on Monday

after a top Fed official suggested there is a chance of tapering

next month, although those units pared some losses after the

encouraging China survey.

"It reflects a theme of mild outperformance in new

industrialised economies' currencies, not just catch-up plays

even as we see cautious environment following the Fed non-taper

move last week," said Saktiandi Supaat, head of FX research for

Maybank in Singapore, referring to Singapore, South Korea and

Taiwan.

"They will keep outperforming on better fundamentals,

correlation and more direct links with developed markets'

recovery as long as the uncertainty of a taper or an eventual

taper does not derail the U.S. or developed market recovery," he

added.

The won and the Taiwan dollar have weathered concerns over

the Fed's policy shift better than Southeast Asian peers as

their high-tech exports have benefited from a global recovery.

WON

The won advanced 0.8 percent to 1,075.0 per dollar as

foreign investors extended a buying spree to a 19th session in

Seoul's main stock exchange.

Still, South Korea's foreign exchange authorities were

spotted intervening to stem its upside, traders said.

Such official dollar purchases prevented exporters from

chasing the won for month-end settlements, they added.

"Everybody is cautious over the authorities here. China PMI

added support, but the won is likely to stay around the current

levels," a foreign bank trader in Seoul, referring to the flash

HSBC Purchasing Managers' Index.

China is South Korea's top export market.

TAIWAN DOLLAR

The Taiwan dollar rose as much as 0.8 percent to 29.505 to

the U.S. dollar, its strongest since May 10, on inflows from

foreign financial institutions and exporters' demand.

But its upside was limited in thin trade as the central bank

was spotted buying small amounts of U.S. dollars around 29.520,

traders said.

Local importers also purchased the greenback for payments,

while some foreign institutions joined them, according to

traders.

RUPIAH

The rupiah lost ground on increasing dollar demand from

local companies for month-end payments.

The forwards market pointed to further depreciation with

one-month non-deliverable forwards to the dollar

weakening to 11,310.

The central bank was spotted providing dollar liquidity

around the session low of 11,470 per dollar, traders said.

"BI wants to maintain that level first," said a

Jakarta-based trader, referring to Bank Indonesia.

"But the rupiah will weaken more this week as dollar demand

is intensifying," he added.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0430 GMT

Currency Latest bid Previous day Pct Move

Japan yen 99.12 99.31 +0.19

Sing dlr 1.2490 1.2523 +0.26

Taiwan dlr 29.570 29.752 +0.62

Korean won 1075.80 1084.10 +0.77

Baht 31.12 30.95 -0.56

Peso 43.16 43.06 -0.24

Rupiah 11470.00 11340.00 -1.13

Rupee 62.37 62.23 -0.22

Ringgit 3.1710 3.1645 -0.20

Yuan 6.1180 6.1212 +0.05

Change so far in 2013

Currency Latest bid End prev year Pct Move

Japan yen 99.12 86.79 -12.44

Sing dlr 1.2490 1.2219 -2.17

Taiwan dlr 29.570 29.136 -1.47

Korean won 1075.80 1070.60 -0.48

Baht 31.12 30.61 -1.64

Peso 43.16 41.05 -4.89

Rupiah 11470.00 9630.00 -16.04

Rupee 62.37 54.99 -11.83

Ringgit 3.1710 3.0580 -3.56

Yuan 6.1180 6.2303 +1.84

(Additional reporting by Miao-jung Lin in TAIPEI and Yena Park

in SEOUL; Editing by Richard Borsuk)

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