* South Korean won, Malaysian ringgit leads gains
* Mixed China data caps sentiment
* Japan's yen falls after c.bank jolt on Friday
By Archishma Iyer
July 31 (Reuters) - Most emerging Asian shares were set
to end the month on a positive note, as sentiment received a
boost from easing inflation in the U.S., while regional
currencies were mixed with the won and the ringgit among
gainers.
The South Korean won and the Malaysian ringgit
traded 0.2% and 0.5% higher, while the Philippines peso
also strengthened 0.2%.
Data on Friday showed that annual U.S. inflation rose at its
slowest pace in more than two years in June, boosting the
likelihood that the U.S. Fed could have reached the peak of its
aggressive rate hike cycle.
The dollar index, which measures the strength of the
greenback against six major currencies was at 101.84 at 0500
GMT.
"If carry trades are being unwound, and if we are right that
the dollar is likely to weaken (in the near-term), I think
that's okay for high-yielding currencies such as the Indian
rupee and the Indonesian rupiah," said Michael Wan, a senior
currency analyst from MUFG.
Mixed data from Asia's largest economy suggested that
Beijing could announce a larger stimulus package to prop up its
troubled economy, which capped some risk confidence.
The Singapore dollar, Thai baht and the
Indonesian rupiah traded between flat and down 0.6%.
On a separate note, Japan's yen lost around 0.5%,
while its share market gained about 0.9%. Last Friday,
the country's central bank made a decision to adjust its yield
curve policy for longer-dated bonds, even as it maintained an
ultra-accommodative stance, which led to wild fluctuation in the
currency.
Analysts from Maybank said that they did not rule out
volatility in the dollar/yen pair in the near-term as markets
still feel uncertain about the BoJ since the central bank
governor has not signalled this move as tightening.
Among Asian shares, equities in Bangkok, Jakarta
, Manila and Seoul gained between 0.2% and
0.8%.
HIGHLIGHTS:
** Indonesia' benchmark 10-year bond yield rises to 6.293%
** Philippines need not match Fed's 25 bps hike - finance
minister
** INDIA STOCKS-Indian shares open lower dragged by
financials
Asia stock indexes and currencies at 0500 GMT
COUNTRY FX RIC FX FX YTD % INDEX STOCKS STOCKS
DAILY % DAILY YTD %
%
Japan -0.49 -7.57 0.88 26.68
China
India -0.05 +0.53 0.11 8.63
Indonesia +0.01 +3.16 0.18 0.90
Malaysia +0.55 -2.83 0.28 -2.75
Philippines +0.10 +1.49 0.46 1.36
S.Korea
Singapore -0.05 +0.62 -0.16 3.52
Taiwan -0.16 -2.33 -0.94 21.17
Thailand -0.55 +0.96 0.80 -6.77
(Reporting by Archishma Iyer in Bengaluru)