South Korea’s won and Taiwan’s dollar led gains in Asian currencies as speculation China may unveil new plans to revive growth helped push up global equities. The won rose for a third day, the longest winning streak in two months, and the Taiwan currency advanced from a seven-year low after Premier Wen Jiabao said today China will “significantly increase” investment in 2009 to counter a slowdown in the world’s third-largest economy. Six of the region’s 10 most-traded currencies excluding the yen advanced as Asian stocks climbed for a second day. “It depends on what China’s fiscal budget materially impacts, if this is a nominal increase in public spending or if it really translates to a genuine increase in imports,” said Joseph Lau, an analyst at Credit Suisse Group AG in Hong Kong. “If we get the second scenario, it should provide some benefit for the Korean won and the Taiwan dollar” The won rose 0.4 percent to 1,545.9 per dollar as of 1:02 p.m. in Seoul, according to Seoul Money Brokerage Services Ltd. Taiwan’s dollar strengthened 0.5 percent to NT$34.88 in Taipei, according to Taipei Forex Inc. It touched NT$35.297 on March 3, the weakest since July 2001. The Chinese yuan traded at 6.8383 versus 6.8431 yesterday in Shanghai, according to the China Foreign Exchange Trade System. The Indonesian rupiah gained 0.2 percent to 12,050 in Jakarta. The Philippine peso rose 0.1 percent to 48.638 against the dollar, according to Tullett Prebon Plc. Still Cautious “We face unprecedented difficulties and challenges,” Wen told delegates to China’s parliament in Beijing today. The nation needs to “reverse the economic slide as soon as possible,” he said, without announcing an increase to the government’s 4 trillion yuan ($585 billion) stimulus package. The Korean currency pared its loss to 38.6 percent over the past year, the biggest drop among the 10 most-traded Asian currencies outside Japan, amid concern that banks will face a shortage of funds needed to service overseas debt amid global financial turmoil. The Kospi stock index added 15 percent as global funds bought more local shares than they sold for the first time in 18 days. “People are heartened by hopes for China’s additional stimulus plan,” said Jay Won, a currency dealer with Korea Exchange Bank in Seoul. “The undercurrent in the market is still cautious.” Currency Reserves South Korea’s foreign-exchange reserves are not at a “worrisome” level, Vice Finance Minister Hur Kyung Wook said in an interview on SBS Radio today. Currency reserves fell for the first time in three months to $201.5 billion in February, the Bank of Korea said this week. The euro declined on speculation European Central Bank President Jean-Claude Trichet will cut interest rates today and signal further reductions in borrowing costs to counter the region’s deepening recession. The European currency dropped to $1.2603 in Tokyo from $1.2661 late in New York yesterday. The European currency fell to 125.07 yen from 125.52. The ringgit fell before tomorrow’s government report that economists say will show exports in January slumped the most in 16 years. Deputy Prime Minister Najib Razak on March 10 will announce a second round of extra spending, which may widen the budget deficit. About 76 percent of the $1.9 billion initial package unveiled in November has been spent, state news agency Bernama reported yesterday. “China is crucial to the region as every economy is hoping to sell more to them when other markets are suffering,” said Yeo Chin Tiong, head of treasury at OSK Investment Bank Bhd. in Kuala Lumpur. While the ringgit benefits from short-term sentiment, “jitters about the budget deficit” may cap any gain, he said. The ringgit fell 0.2 percent to 3.7215 per dollar in Kuala Lumpur. The currency may weaken to 3.7610 in three months, non- deliverable forwards contracts show. The report will show Malaysia’s exports fell 22.4 percent in January from a year earlier, according to a Bloomberg News survey of economists. Elsewhere, the Thai baht was little changed at 36.13 and Vietnam’s dong traded at 17,479. The Singapore dollar declined 0.15 percent to S$1.5519.

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