VINACHEM

Asian currencies rose, led by SouthKorea’s won and India’s rupee, after U.S. factory orders toppedestimates, tempering concern global economic growth is slowing.

The won touched the highest level in two months after datashowed orders rose for the first time in three months. Asianstocks rose for a sixth day ahead of a European Central Bankmeeting tomorrow at which 51 of 62 economists surveyed byBloomberg forecast a benchmark interest-rate cut. China maylower banks’ reserve-requirement ratios three more times in 2012, Shanghai Securities News reported on its website, citing areport released by the China Banking Association today.

“U.S. factory orders were better than expected,” said Vishnu Varathan, an economist at Mizuho Corporate Bank Ltd. inSingapore. “Markets are also celebrating the expectation ofmore policy stimulus.”

The rupee gained 0.2 percent to 54.26 per dollar as of 2:44p.m. in Mumbai, according to data compiled by Bloomberg. The wonstrengthened 0.2 percent to 1,135.70, Taiwan’s dollar rose 0.1percent to NT$29.866 and Thailand’s baht climbed 0.1 percent to31.46.

Factory orders in the world’s largest economy rose 0.7percent, following a revised 0.7 percent drop in April, theCommerce Department said in Washington. Economists had predicteda 0.1 percent gain, based on the median forecast in a BloombergNews survey. Further monetary-policy easing may be needed by the Federal Reserve if the U.S. economy deteriorates, InternationalMonetary Fund Managing Director Christine Lagarde said yesterday.

Thai Stock Purchases

The baht reached a two-week high as global funds boostedholdings of the nation’s stocks by $109 million in the first twodays of this week, exchange data show. The finance ministryraised its 2012 economic growth forecast to 5.7 percent on June28 from its March prediction of about 5.5 percent.

Speculation on policy easing in the U.S. and Europe“supported market sentiment,” said Tohru Nishihama, aneconomist at Dai-ichi Life Research Institute Inc. in Tokyo.“That makes it easier for investors to take risks, helping toboost emerging-market currencies.”

Malaysia’s ringgit rose as much as 0.4 percent beforetrading little changed at 3.1527 per dollar. A report todayshowed exports jumped 6.7 percent in May from a year earlier,compared with the median forecast for a 4.5 percent gain in aBloomberg survey. Overseas sales fell 0.1 percent in April.

China’s yuan gained 0.07 percent to 6.3477 per dollar inShanghai, according to the China Foreign Exchange Trade System.The People’s Bank of China raised the reference rate by 0.09percent to 6.3121 per dollar.

Peso Retreats

“Investors are expecting better data from the U.S. andChina, with global central banks on track with more easingmeasures,” said Tommy Ong, senior vice-president of treasuryand markets at DBS Bank (Hong Kong) Ltd.

The Philippine peso retreated from a four-year high afterthe central bank pledged to curb excessive volatility in thecurrency. The peso snapped a six-day gain after Bangko Sentralng Pilipinas Governor Amando Tetangco said in an e-mailed replyto questions yesterday that the monetary authority is “watchfulfor signs the speculative part is not overtaking the fundamentalflows.” The currency weakened 0.3 percent to 41.833 per dollar.

Elsewhere, Indonesia’s rupiah gained 0.1 percent to 9,357per dollar and Vietnam’s dong was steady at 20,890.