EM ASIA FX-Rupiah pares losses after unexpected trade surplus; Asia FX stable
* Indonesia July trade surplus at $123.7 mln
* Taiwan dollar gains on stocks
(Adds text, updates prices)
By Jongwoo Cheon
SINGAPORE, Sept 1 (Reuters) - The rupiah eased on Monday but
pared some losses after Indonesia posted a small trade surplus
in July, while emerging Asian currencies barely changed as
regional stocks rose despite downbeat China manufacturing
activity.
Indonesia reported a $123.7 million trade surplus in July,
compared with a Reuters poll forecast for a $390 million
deficit.
The data helped the rupiah recover most of its
initial losses. The Indonesian currency stood at 11,695 per
dollar as of 0450 GMT, compared to the previous close of 11,685.
Earlier, the rupiah eased as much as 0.3 percent to 11,715 on
dollar demand from importers for payments.
The surplus, which was accompanied by a drop in exports and
even sharper fall in imports, did little to dispel doubts over
the health of Southeast Asia's largest economy, traders and
analysts said.
Indonesian manufacturing activity contracted for the first
time in a year in August on declining new orders and production,
a private survey showed earlier.
"Little in the data that suggests IDR is a great buy here.
We continue to expect dips in the one-month NDF, back to 11,700,
to be well supported," said Jonathan Cavenagh, senior FX
strategist with Westpac in Singapore, referring to the one-month
dollar/rupiah non-deliverable forwards.
The NDF stood at 11,745, compared to the prior close of
11,775.
Investors also remained concerned over whether fuel
subsidies, which have exacerbated the current account and budget
deficits, would be reduced.
President-elect Joko Widodo's drive to increase fuel prices,
one of his key election pledges, have stumbled after incumbent
Susilo Bambang Yudhoyono said the conditions were not right at
the moment to cut subsidies.
"Even though we have euphoria from the data, the fuel
subsidy policy is the root problem," said a Jakarta-based
currency trader, adding he would not chase the rupiah.
Emerging Asian currencies almost ignored slowing growth in
China's factory activity as the yuan rebounded on
technical buying. Regional shares also climbed.
A government index of growth in China's manufacturing sector
eased to 51.1 in August from a 27-month high, but it was still
the second-highest reading this year.
The final HSBC/Markit Purchasing Managers' Index also slid
to 50.2, adding to signs of growing softness in the world's
second-largest economy.
TAIWAN DOLLAR
The Taiwan dollar rose as much as 0.4 percent to 29.865 per
U.S. dollar, its strongest since Aug. 13, with some demand from
foreign financial institutions.
HSBC Taiwan Purchasing Managers' Index for August rose to
56.1 from 55.8 in July with new orders strongly expanding.
Local shares gained 0.9 percent, outperforming most
of regional equity markets. On Friday, foreign investors
reported an 11th straight session of net purchases in Taiwan's
stock market.
In August, they bought a combined net 46.7 billion Taiwan
dollar ($1.6 billion) worth of the island's stocks, according to
the exchange data.
Still, importers bought the greenback for payments, limiting
the Taiwan dollar's upside.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0450 GMT
Currency Latest bid Previous day Pct Move
Japan yen 104.18 104.12 -0.06
Sing dlr 1.2495 1.2488 -0.06
Taiwan dlr 29.872 29.970 +0.33
Korean won 1013.70 1014.00 +0.03
Baht 31.96 31.93 -0.09
Peso 43.59 43.59 +0.01
Rupiah 11695.00 11685.00 -0.09
Rupee 60.49 60.50 +0.01
*Ringgit 3.1500 3.1520 +0.06
Yuan 6.1405 6.1432 +0.04
Change so far in 2014
Currency Latest bid End prev year Pct Move
Japan yen 104.18 105.28 +1.05
Sing dlr 1.2495 1.2632 +1.10
Taiwan dlr 29.872 29.950 +0.26
Korean won 1013.70 1055.40 +4.11
Baht 31.96 32.86 +2.82
Peso 43.59 44.40 +1.86
Rupiah 11695.00 12160.00 +3.98
Rupee 60.49 61.80 +2.17
Ringgit 3.1500 3.2755 +3.98
Yuan 6.1405 6.0539 -1.41
* Financial markets in Malaysia are closed for a holiday.
($1=29.8760 Taiwan dollar)
(Additional reporting by Emily Chan in TAIPEI; Editing by Simon
Cameron-Moore)
