* Yuan firms; China Q3 GDP meets market expectations
* Won, Taiwan dlr hit over 1-week highs on equity inflows
(Adds text, updates prices)
By Jongwoo Cheon
SINGAPORE, Oct 19 (Reuters) - Most emerging Asian currencies
rose on Wednesday as tame U.S. inflation data caused investors
to trim bets on a Federal Reserve interest hike in December and
as Chinese growth data soothed some concerns about the world's
The Chinese yuan firmed after data showed the
economy grew 6.7 percent in the third quarter from a year
earlier, as expected, though September indicators were
The resilient GDP reading offset pressure from corporate
dollar demand, but expectations of further slippage in the
renminbi persist, traders said.
South Korea's won and Taiwan's dollar
hit their strongest levels in more than one week on equity
The Thai baht gained as traders unwound bearish
bets on views that political uncertainties after the death of
King Bhumibol Adulyadej may ease.
The dollar retreated from a seven-month high in the
wake of U.S. inflation data.
The so-called core CPI, which strips out food and energy
costs, gained 0.1 percent last month after climbing 0.3 percent
in August. That slowed the year-on-year increase in the core CPI
to 2.2 percent following a 2.3 percent rise in August.
"Asian currencies found some support as markets used the
inflation data as excuse to take profits from the dollar's
recent rallies and cut some bets on a December Fed hike," said
Jung Sung-yoon, a foreign exchange analyst at Hyundai Futures in
"I doubt how further they can strengthen from here, given
various external uncertainties such as the ECB policy. Worries
about China's economy also remain," Jung added.
China's industrial output growth in September unexpectedly
cooled to 6.1 percent from a year earlier, defying expectations
for a slight pick up to 6.4 percent, while a sharp drop in
property construction starts fanned fears of a correction in the
high-flying property market.
The won advanced 0.9 percent to 1,119.8 per dollar, its
strongest since Oct. 11.
Foreign investors were set to extend their buying spree in
Seoul's main stock market to a fifth straight session.
The South Korean currency found further support as offshore
funds dumped dollar holdings to limit losses, traders said.
In the third quarter, offshore funds sold $4.3 billion to
buy won in non-deliverable forwards market, central bank's
preliminary data showed. That was first quarterly selling since
October-December last year.
The Taiwan dollar rose 0.8 percent to 31.424 per the U.S.
dollar, its strongest since Oct. 7.
Local stocks advanced 0.7 percent on demand from
Exporters bought the Taiwan dollar for settlements around
31.500 although those corporate bids were not that strong,
currency traders said.
The central bank has not been spotted intervening to stem
the currency's gains yet, traders said.
The baht rose after Thailand's junta sought on Tuesday to
reassure the country that the death of King Bhumibol last week
would not upend plans for a return to democratic rule, which
include a general election in late 2017.
But the Thai currency gave up some of earlier gains on
continuous equity outflows.
Foreign investors also cut local bond holdings by late
morning on Wednesday, the Thai Bond Market Association data
CURRENCIES VS U.S. DOLLAR
Change on the day at 0535 GMT
Currency Latest bid Previous day Pct Move
Japan yen 103.82 103.86 +0.04
Sing dlr 1.3864 1.3861 -0.02
Taiwan dlr 31.460 31.669 +0.66
Korean won 1124.50 1129.40 +0.44
Baht 34.92 35.01 +0.23
Peso 48.230 48.200 -0.06
Rupiah 13010 13030 +0.15
Rupee 66.72 66.72 +0.00
Ringgit 4.1890 4.1925 +0.08
Yuan 6.7395 6.7418 +0.03
Change so far in 2016
Currency Latest bid End prev year Pct Move
Japan yen 103.82 120.30 +15.87
Sing dlr 1.3864 1.4177 +2.26
Taiwan dlr 31.460 33.066 +5.10
Korean won 1124.50 1172.50 +4.27
Baht 34.92 36.00 +3.08
Peso 48.23 47.06 -2.43
Rupiah 13010 13785 +5.96
Rupee 66.72 66.15 -0.85
Ringgit 4.1890 4.2935 +2.49
Yuan 6.7395 6.4936 -3.65
(Reporting by Jongwoo Cheon; Additional reporting by Roger Tung
in TAIPEI and Satawasin Staporncharnchai in BANGKOK; Editing by