Most Asia EMFX Pare Initial Gains

Most currencies from the Asia EM space started on a firmer footing, absorbing yesterday's risk-on impetus. This was weighed against continued Evergrande angst, which undermined risk appetite to a degree.

• CNH: Offshore yuan struggled for a clear direction, holding a tight range in the final Asia-Pac session of the week. The PBOC continued to add liquidity to the system amid the ongoing Evergrande saga and ahead of the looming quarter-end/Golden Week holiday.
• KRW: Spot USD/KRW recouped its initial losses, as South Korea reported its largest daily Covid-19 caseload. Heightened travel activity during the recent Chuseok holiday has sparked concerns over a potential flare-up in new infections.
• IDR: The rupiah traded sideways after generally remaining rangebound this week.
• MYR: USD/MYR moved away from a fresh weekly low and crept back towards neutral levels. Malaysia's CPI inflation slowed to +2.0% Y/Y in August from +2.2%, consensus pointed to a steady pace of price growth.
• PHP: The Philippine peso was among the worst performers in the Asia EM basket. BSP yesterday left its policy rate unchanged but raised inflation forecasts and signalled a sense of concern with the recent spike in CPI.
• TWD: TWD firmed a tad, despite two incursions into Taiwan's air defence identification zone by China's military aircrafts, which came a day after the self-ruling island applied to join the Trans-Pacific Partnership.
• SGD: USD/SGD edged higher ahead of the release of Singapore's industrial output.
• Onshore markets in Thailand were closed in observance of a public holiday.