EM ASIA FX-Corp earnings, Spain woes weigh on Asia FX; China PMI supports

* Ringgit tries to break 3.0570/dlr support

* Won dips, but exporters, offshore funds cut downside

* Sing dlr up after China flash PMI

(Adds text, updates prices)

By Jongwoo Cheon

SINGAPORE, Oct 24 (Reuters) - Most emerging Asian currencies

eased on Wednesday as investors trimmed risky assets after news

of weak corporate earnings and higher Spanish borrowing costs,

although regional units recovered much of losses after

encouraging China's manufacturing survey.

The Malaysian ringgit tried to weaken past a chart

support and the Philippine peso eased as interbank

speculators added dollar holdings.

Both currencies and their peers including the South Korean

won were off their session lows after the China HSBC

Flash Manufacturing Purchasing Managers Index (PMI) rose to a

three-month high of 49.1, reducing worries of a hard landing in

the world's second-largest economy.

The survey, as well as Australia's higher-than-expected

inflation data, powered the Australian dollar and the

Singapore dollar. Asian shares trimmed their initial

slides.

"The Flash PMI confirmed again that the China economy is

bottoming out. If China shows more improvement, Asian currencies

will stay firm in the medium and longer term," said Yuna Park, a

currency and bond analyst at Dongbu Securities in Seoul.

"But in the short-term, Asian currencies may see some

corrections on rising risk-off sentiment due to Spain and

intervention possibilities. Their valuations appeared a bit too

high," Park added.

Other analysts and dealers said emerging Asian currencies

are unlikely to extend gains on sustained worries that a

sluggish global economy may keep biting into worldwide corporate

performance.

Concerns over the Spanish debt problems also persisted with

the country's bond yields up in the wake of credit rating

downgrade of five Spain's regions by Moody's Investors Service.

"There remains a sufficient layer of uncertainty to keep

dollar/Asia supported, given also that some Asian currencies

such as the won have risen fairly significantly already," said

Emmanuel Ng, a foreign exchange strategist at OCBC Bank in

Singapore, referring to worries about Spain and global growth.

On Tuesday, the won hit a near one-year high against the

dollar and touched its strongest in more than six months versus

the yen.

Investors also stayed cautious over possible intervention by

Asian foreign exchange authorities to stem their currency's

appreciation.

Hong Kong's central bank stepped into the currency market

twice on Tuesday as the local currency hit the top end of its

trading range.

RINGGIT

The ringgit hovered near the kijun line at 3.0570 per dollar

on the daily Ichimoku chart, which the currency had been closing

stronger than since late July.

Earlier, the Malaysian currency weakened to 3.0645, but

recovered some of the loss after the encouraging China Flash

PMI.

Still, investors hesitated to add more bullish bets on the

local currency as risk appetite weakened, dealers said.

"Markets were digesting the China PMI, but overnight news

such as weak U.S. corporate earnings was pretty bearish for

risk," said a Malaysian bank dealer in Kuala Lumpur.

"It may be still prudent to hold long dollar positions. I

will not short dollar/ringgit here," he added.

PHILIPPINE PESO

The Philippine peso eased in thin trading on weaker regional

stocks, although it cut some of initial slide after the China

flash PMI.

Investors were reluctant to build up aggressive positions

before the central bank's policy meeting on Thursday when it is

expected to cut its policy interest rate, but some dealers were

looking to buy the peso on dips.

"With the better China flash PMI data, we may have seen the

top of dollar/peso for now. Traders saw its uptick as a chance

to add or reinstate dollar-short positions," said a European

bank dealer in Manila.

The dealer expected the peso to head to 41.30 per dollar,

although the level is unlikely to be breached due to possible

intervention.

WON

The won turned higher as exporters' demand for settlements

and economic indicators from China and Australia forced

investors to reduce dollar holdings. Offshore funds also joined

bids for the local unit.

The South Korean currency started local trade weaker at

1,106.0 per dollar with risk sentiment hurt by dismal U.S.

earnings.

"Few wanted to hold dollar-long positions during the local

trade. It looks better to buy the won on dips, given that

exporters are waiting to dump dollars," said a foreign bank

dealer in Seoul.

TAIWAN DOLLAR

The Taiwan dollar gained slightly on the main

exchange in subdued trading from Tuesday's close, which dealers

said the central bank weakened at the last minute of trading as

usual.

The island's currency, however, edged weaker on the smaller

market as disappointing U.S. corporate earnings

dented risk appetite.

On the smaller market, the Taiwan dollar was at 29.274

versus the greenback, slightly weaker than the previous close of

29.271.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0650 GMT

Currency Latest bid Previous day Pct Move

Japan yen 79.77 79.86 +0.11

Sing dlr 1.2228 1.2252 +0.20

Taiwan dlr 29.274 29.328 +0.18

Korean won 1103.30 1103.10 -0.02

Baht 30.75 30.73 -0.07

Peso 41.37 41.32 -0.12

Rupiah 9610.00 9605.00 -0.05

Rupee 53.73 53.74 +0.02

Ringgit 3.0560 3.0530 -0.10

Yuan 6.2489 6.2480 -0.01

Change so far in 2012

Currency Latest bid End prev year Pct Move

Japan yen 79.77 76.92 -3.57

Sing dlr 1.2228 1.2969 +6.06

Taiwan dlr 29.274 30.290 +3.47

Korean won 1103.30 1151.80 +4.40

Baht 30.75 31.55 +2.60

Peso 41.37 43.84 +5.98

Rupiah 9610.00 9060.00 -5.72

Rupee 53.73 53.08 -1.21

Ringgit 3.0560 3.1685 +3.68

Yuan 6.2489 6.2940 +0.72

(Additional reporting by Lee Kyoung-ho in SEOUL, Jeanny Kao in

TAIPEI and IFR Markets' Catherine Tan; Editing by Eric Meijer)

Source: http://news.yahoo.com/em-asia-fx-corp-earnings-spain-woes-weigh-071951282--finance.html

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