By Kim Kyoungwha Dec. 9 (Bloomberg) -- Asian currencies gained, paced by Indonesia’s rupiah and South Korea’s won, as economic stimulus plans encouraged overseas investors to buy the region’s assets. The rupiah rose to near the highest in a month on speculation plans for increased public spending in the U.S. and Asia will help stem a deeper economic slowdown. The Korean currency climbed toward a one-week high as global funds bought more of the nation’s shares than they sold for a second day, helping the Kospi stock index advance for a third session. “U.S. and Asian stocks have a strong correlation and we should see risk appetite reviving now,” said Hideki Hayashi, chief economist at Shinko Securities Co. in Tokyo. “Outside money is coming back to Asia and this should also sustain regional currency gains.” The rupiah advanced 3.5 percent to 11,294 versus the dollar as of 9:58 a.m. in Jakarta, according to data compiled by Bloomberg. The won rose 0.4 percent to 1,442.70, according to Seoul Money Brokerage Services Ltd. It touched 1,436, the strongest level since Dec. 3. The MSCI Asia Pacific Index of regional stocks rallied 1.1 percent, tracking gains in U.S. equities after President-elect Barack Obama said on Dec. 6 he will boost investments in roads, bridges and buildings to create jobs. Spending Plans The yen rose against the euro as a recession in the euro- zone reduces the appeal of assets denominated in the currency. Japan’s currency rose to 119.94 against the euro in Tokyo from 120.26 late yesterday in New York. It was little changed at 92.83 versus the dollar. Malaysia’s ringgit rose the most in five weeks after Obama pledged to boost the economy with the biggest public-works spending package since the 1950s. Malaysia’s 7 billion-ringgit ($1.9 billion) stimulus plan, announced on Nov. 4, will support the economy by March next year, state news agency Bernama reported on Dec. 6, citing Second Finance Minister Nor Mohamed Yakcop. India on the weekend unveiled a 200-billion rupee ($4 billion) stimulus package that includes tax cuts to spur growth. The ringgit rose 0.5 percent to 3.6168 per dollar before trading at 3.6260 from 3.6350 on Dec. 5, according to data compiled by Bloomberg. Malaysian markets were shut for a holiday yesterday. The Korean government will spend 60 percent of next year’s budget in the first half to help spur the economy, Vice Finance Minister Bae Kook Hwan said today. “The economy will be difficult in the first half of next year and pick up in the second half,” Bae said on SBS radio in Seoul. “There are some signs of investment sentiment improving as stocks across the globe rise,” said Jay Won, a currency dealer at Korea Exchange Bank in Seoul. “But importers may emerge to pay bills, blocking gains in the won.” China Yuan The yuan and forward contracts rose on signs China will increase government spending rather than weakening the currency to support growth in the world’s fourth-largest economy. The currency climbed 0.1 percent to 6.8725 a dollar in Shanghai, compared with 6.88 yesterday, according to the China Foreign Exchange Trade System. Twelve-month non-deliverable forwards gained 0.4 percent to 7.0978 a dollar, data compiled by Bloomberg showed. Forwards are agreements in which assets are bought and sold at current prices for settlement at a later time. Elsewhere, the Taiwan dollar gained 0.1 percent to 33.47 and the Philippine peso climbed 0.5 percent to 48.37. India’s financial markets are closed today. To contact the reporters on this story: Kim Kyoungwha in Beijing at kkim19@bloomberg.net.

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