By Lilian Karunungan and Karl Lester M. Yap Nov. 10 (Bloomberg) -- The Philippine peso and the Singapore dollar led gains in Asian currencies on speculation increased spending and interest-rate cuts around the world will help bolster global growth. Seven of Asia's 10 most-active currencies advanced after the Group of 20 nations said yesterday said they are prepared to use ``monetary and fiscal policy'' measures to battle a slowdown. Asian stocks rallied for the first time in three days after China announced a $586 billion economic stimulus package on Nov. 9. The Philippine central bank on Nov. 7 cut lenders' reserve requirement to 19 percent from 21 percent and Taiwan reduced its benchmark interest rate on Nov. 9. ``These policies ease pressure on liquidity and credit and provide some relief to emerging-market currencies,'' said Lito Biacora, vice president for treasury at Bank of the Philippine Islands in Manila. The peso climbed 0.7 percent to 48.510 per dollar as of 11:29 a.m. in Manila, according to Tullett Prebon Plc. The Singapore dollar rose 0.50 percent to S$1.4859, according to data compiled by Bloomberg. G-20 Meet The Group of 20 nations said yesterday after a meeting in Sao Paulo that they are ready to act ``urgently'' and governments must take all measures to bolster economic growth. China's stimulus package is equivalent to almost a fifth of its gross domestic product last year and will be used by the end of 2010. The yen declined for a second day against the euro and the dollar on speculation China's plan will give investors confidence to buy higher-yielding assets using money borrowed in Japan. The yen weakened to 98.89 a dollar from 98.24 late in New York on Nov. 7, and slipped to 127.30 against the euro versus 124.90. Malaysia's ringgit rose, snapping two days of losses, as the Star newspaper reported today the government may top up its 7 billion ringgit ($1.98 billion) fiscal stimulus plan announced on Nov. 4. ``The market is reacting to China's plan because it's a crucial factor in cushioning the region from a major slowdown,'' said Suresh Kumar Ramanathan, a rates and currency strategist at CIMB Investment Bank Bhd. in Kuala Lumpur. ``The local factors are less encouraging.'' The ringgit advanced 0.4 percent to 3.5385 a dollar in Kuala Lumpur, Bloomberg data showed. Outlook Cut Fitch Ratings today cut the outlook on Malaysia's credit rating to ``stable'' from ``positive,'' citing a slowdown in electronics exports and lower commodity prices. China is Malaysia's fourth-largest export market. Traders bet the ringgit will weaken to 3.5430 per dollar in three months, according to non-deliverable forwards contract. Forwards are agreements in which assets are bought and sold at current prices for delivery at a specified future date. They are settled in dollars. Taiwan's dollar strengthened, extending a two-week rally. China is Taiwan's biggest export market. ``China's stimulus package is not only good for risk appetite but also final Chinese demand for goods,'' said Dwyfor Evans, a currency strategist with State Street Global Markets in Hong Kong. ``That's why we're seeing risk appetite come back. We still have to be cautious about many Asian currencies, despite what we've seen this weekend.'' Regional Currencies The currency gained as much as 0.3 percent to NT$32.724 before trading at NT$32.790, compared with NT$32.824 on Nov. 7, according to Taipei Forex Inc. Taiwan's economic growth will accelerate next year as the government increases spending and inflation eases, the privately funded Taiwan Institute for Economic Research said Nov. 6. Gross domestic product will expand 4.11 percent in 2009 after rising 4.08 percent this year, the Taiwanese research institute said in a statement. Elsewhere, the South Korean won fell to 1,332 a dollar from 1,328 on Nov. 7, according to Seoul Money Brokerage Services Ltd. The Thai baht traded at 34.95 versus 34.96. The Indonesian rupiah dropped 1.2 percent to 11,025. Vietnam's dong was little changed at 16,973. The Indian rupee advanced 0.9 percent to 47.225. To contact the reporter on this story: Lilian Karunungan in Singapore at at lkarunungan@bloomberg.net; Karl Lester M. Yap in Manila at kyap5@bloomberg.net.

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