VINACHEM

Asian currencies had a weekly gain,led by Taiwan’s dollar, as upbeat U.S. economic data brightenedthe outlook for regional exports and prompted investors to favorriskier assets.

Home sales in the world’s biggest economy were the highestin almost two years in March, according to a report yesterday,and Federal Reserve Chairman Ben S. Bermanke said April 25 thecentral bank was prepared to add more stimulus if needed. SouthKorea’s gross domestic product increased in the first quarter atthe fastest pace in a year and the nation’s current - account surplus reached a four-month high in March, central bank reportsshowed yesterday and today.

Taiwan’s dollar strengthened 0.6 percent this week toNT$29.332 versus the greenback in Taipei, its best performancein almost three months, according to data compiled by Bloomberg.Malaysia’s ringgit advanced 0.5 percent to 3.0490 as of 4:21 p.m.in Kuala Lumpur and South Korea’s won appreciated 0.4 percent to1,135.10. India’s rupee weakened 1 percent to 52.61 as Standard & Poor's lowered the outlook on its credit rating for the nation.

“It looks like the U.S economy is recovering; that boostsoptimism in the market,” said Samson Tu, a Taipei-based fund manager at Uni-President Assets Management Corp., who helpsoversee $1.6 billion of fixed-income securities. “The flowsinto emerging sovereign bonds have been very active lately.”

Funds focused on emerging-market bonds attracted $14.4billion in the first quarter of this year, compared with $1.9billion in the year-earlier period, according to data from U.S.research company EPFR Global.

Spain Downgrade

Asia’s currency gains were limited by concern Europe’s debtcrisis is worsening. S&P cut Spain’s sovereign- credit ratingyesterday for the second time this year, citing concern that thegovernment will have to provide further fiscal support to banksas the economy contracts.

The downgrade “won’t be enough to weaken the won,” saidByeon Ji Young, a Seoul-based currency analyst at Woori FuturesInc. “The overall atmosphere is positive for the won withBernanke’s comments still affecting markets and Korea’s currentaccount improving.”

The won completed its biggest weekly gain in almost twomonths as data showed today that the current-account surplus was$3 billion in March, up from $557 million in February. Gross domestic product rose 0.9 percent in the first quarter from theprevious three months, according to figures released yesterday.

Export Outlook

The ringgit rose for a fourth day, its longest winningstreak in 12 weeks. Malaysia’s exports increased 15 percent froma year earlier in February, the biggest gain in four months,according to data released April 10.

“U.S. employment and housing are gradually improving sospending is on the rise and we expect Malaysian exports to pickup,” said Akira Banno, a treasury adviser at Bank of Tokyo-Mitsubishi UFJ Bhd. in Kuala Lumpur.

Elsewhere, the Philippine peso climbed 0.6 percent thisweek to 42.368 per dollar, Thailand’s baht advanced 0.3 percent30.82 and China’s yuan was little changed at 6.3104.Indonesia’s rupiah fell 0.1 percent to 9,194 and Vietnam’s dongdropped 0.2 percent to 20,875.