South Korea’s won and the Taiwan Dollar gained as speculation U.S. bank finances are improving helped counter concern about a deepening global recession. The Philippine peso slid after China’s exports fell by a record. The won rose for a fourth day, the longest winning streak this year, after Citigroup Inc. said it was having its best quarter since 2007, easing concern swelling losses would prompt financial companies to hoard dollars. The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-active currencies excluding the yen, surrendered early gains after China reported a 26 percent drop in exports for February. “The China trade numbers certainly were a party pooper for Asian currencies today,” said Emmanuel Ng, a strategist with Oversea Chinese Banking Corp. in Singapore. “The recent appreciation may prove an all-too-brief respite if the negative newsflow re-emerges.” The won advanced 2.8 percent to 1,471 per dollar as of 3 p.m. close in Seoul. The currency, which last week reached an 11-year low of 1,597, has jumped 6.6 percent in the past four days. The Asia Dollar Index was little changed at 102.67, after earlier climbing as much as 0.3 percent. The MSCI Asia-Pacific Index advanced 2.6 percent and the Standard & Poor’s 500 Index of U.S. stocks yesterday had its biggest rally this year after Citigroup Chief Executive Officer Vikram Pandit said the first two months of 2009 were profitable. China’s slide in February overseas sales was a steeper drop than was forecast by any of the 16 economists surveyed by Bloomberg News before the figures were released. Stronger Yen The report helped fan concern the global economy is deteriorating, spurring demand for the yen as a safe haven. Japan’s currency traded at 98.51 per dollar, compared with 98.67 late yesterday in New York. The Korean currency pared this year’s loss to 15 percent, still Asia’s biggest decline, as global funds bought more local shares than they sold for a second day. South Korea’s 2009 trade surplus will probably exceed the government’s initial forecast of $13 billion, Finance Minister Yoon Jeung Hyun said at a weekly meeting in Gwacheon today. quarter since 2007. “Confidence in dollar sales is starting to strengthen on optimism over a recovery in the U.S. banking system,” said Lee Young Chul, a currency dealer with Korea Exchange Bank in Seoul. Taiwan’s dollar strengthened 0.3 percent to NT$34.488 versus the greenback. It earlier touched NT$34.239, the strongest level since Feb. 16. China Exports The Philippine peso came under pressure as China’s trade data sparked concern that the nation’s factories, some of which supply parts and materials to assembly plants in China, will see orders decline. The government yesterday reported a 41 percent drop in January exports, the steepest slide in at least 28 years. “There was adverse news that came out in the afternoon that turned some currencies including the peso,” said Rafael Algarra, treasurer at Security Banking Corp. in Manila. “We will keep on seeing these bouts of risk aversion as investors react to any immediate developments.” The peso fell 0.2 percent to 48.41 a dollar, having earlier climbed as much as 0.5 percent. Malaysia’s ringgit declined 0.2 percent to 3.7005, having also risen by up to 0.5 percent in early trading. Elsewhere, the yuan and the Vietnamese dong were little changed at 6.8404 per dollar and 17,477.50, respectively.

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