* South Korean won leads charge among Asia FX * MSCI International EM currency index not far from 18-month high * Thai baht hits highest since Aug (Updated at 0655 GMT) By Archishma Iyer Nov 28 (Reuters) – Most emerging Asian currencies were bolstered by a weak U.S. dollar on Tuesday, with the South Korean won leading the charge after softer U.S. economic data signalled a potential pause in Federal Reserve rate hikes and spurred a positive trend in equities. A slip in new U.S. home sales overnight pushed the dollar to a three month-low, cementing bets that the Fed’s aggressive campaign of raising rates likely peaked. Investors will look to the U.S. Personal Consumption Expenditure (PCE) data out later this week for further cues on the rate trajectory, with a 25% chance of the Fed beginning to cut rates as early as March next year. At 0655 GMT, the dollar index, which measures its strength against six major peers, was at 103.2, steady at its last close. “Players are still banking on Friday’s anticipated slower PCE deflator inflation as a convincing sign that the Fed is done tightening,” analysts at DBS wrote in a note. Back in Asia, the South Korean won led the gains for the day, advancing as much as 1%, with the Taiwan dollar in tow, ending about 0.4% higher. Thailand’s baht also traded 0.5% higher, hitting its highest level in three months to trade at 34.870 to the dollar and poised for its second straight monthly gain. The Thai central bank governor, however, flagged that economic growth in the third quarter was disappointing, even as domestic consumption held up well. The Singapore dollar, Malaysian ringgit and the Indonesian rupiah traded up to 0.4% higher. Both the Malaysian and the Philippines currencies are set to snap a three-month losing streak in November, while the Indonesian rupiah is likely to log its biggest monthly gain since January. The MSCI International Emerging Market Currency Index inched about 0.1% higher on the day, not far from the 18-month peak the index touched last week. As for Asian equities, stocks in Bangkok, Mumbai, Manila and Taipei gained in the 0.2%-1.2% range. Separately, investors will closely follow Argentinian assets after president-elect Javier Milei visited the United States. The informal Argentinian peso had ended at 970 to the dollar. HIGHLIGHTS: ** Indonesia’s benchmark 10-year bond yield remains steady at 6.739% ** PBOC governor says will keep monetary policy accommodative, expects inflation to pick up ** IMF keen to support Argentina, possibly through resilience trust -Georgieva Asia stock indexes and currencies at 0655 GMT Japan +0.27 -11.57 28.03 -0.12 China +0.00 -3.53 0.15 -1.72 India -0.02 -0.80 0.17 9.52 Indonesia +0.36 +0.84 0.61 3.00 Malaysia +0.19 -5.78 0.04 -3.12 Philippines +0.01 +0.45 0.34 -4.19 S.Korea +0.78 -2.26 1.05 12.76 Singapore +0.12 +0.35 -0.62 -5.66 Taiwan +0.32 -2.42 1.19 22.66 Thailand +0.47 -0.83 0.45 -16.11 (Reporting by Archishma Iyer in Bengaluru;Editing by Dhanya Ann Thoppil)
