Peso leads gains

ASIAN CURRENCIES ROUND-UP

Asian currencies rose, led by the Philippine peso, on speculation foreign investors purchased emerging market shares following a rally in U.S. equities.

The peso was the best performer of the 10 most-traded Asia- Pacific currencies against the dollar, climbing to its highest this month. The Standard & Poor's 500 Index yesterday gained the most in four years on optimism the government will take steps to limit losses on mortgage loans.

"Investor appetite globally is strongly affected by concerns on the U.S.,'' said Roland Avante, treasurer at Chinatrust (Philippines) Commercial Bank in Manila. "The strong rebound in U.S. stocks is boosting the stock market today, which creates support for the peso.''

The peso rose as high as 45.28 to the dollar, the strongest since July 31, before trading at 45.435 as of 4:40 p.m. in Manila, from 45.465 yesterday, according to Tullett Prebon Plc.

The benchmark stock index in the Philippines advanced 2.8 percent, the biggest gain since March. The peso has climbed 13.2 percent in the past year as the stock index surged 40.8 percent.

"The stock market seems to be doing quite well,'' said Steve Rowles, a currency strategist at CFC Seymour Ltd. in Hong Kong. ``Look for further appreciation of the peso.''

The peso may strengthen to 42.50 against the dollar by the end of the year, Rowles said.

South Korea's currency also gained on speculation investors will buy local shares as global appetite for risk improves. The won rose to 922.90 against the dollar from 923.40 yesterday, according to Seoul Money Brokerage Services Ltd. The benchmark Kospi index of stocks rose as much as 1.8 percent.

``The won is going to be very much influenced by the Korean and Asian stock markets,'' said Lee Moon Hee, a currency trader at ABN Amro Bank NV in Seoul. The Kospi's gain suggests ``the dollar-won has a chance of going lower.''

The Malaysian ringgit gained as the Kuala Lumpur Composite Index of shares rose as much as 1.9 percent today. The ringgit rose as high as 3.4565 versus the dollar before being quoted at 3.467, according to data compiled by Bloomberg.

The ringgit pared gains after the Federation of Malaysian Manufacturers said the currency's strength has eroded the profitability of some of the nation's exporters.

``The exchange rate is beginning to affect the margins of some of the exporters,'' the federation's president Yong Poh Kon told reporters in Kuala Lumpur today. A stronger ringgit raises the price of goods in overseas markets.