Asian currencies snapped a two-day loss after an unexpected expansion of U.S. service industries eased concern the world’s biggest economy is sliding into recession. South Korea’s won was the biggest gainer in the region as the benchmark Kospi stock index climbed 2.1 percent. Central banks in South Korea, Malaysia, Indonesia and the Philippines will all keep their benchmark rates unchanged tomorrow, according to four Bloomberg News surveys, on concern global growth will weaken as the U.S. economy slows and Europe’s debt crisis worsens. “The won is rising as sentiment improved following the Kospi gains,” said Jeon Seung Ji, a currency analyst at Samsung Futures Inc. in Seoul. “It seems some investors judged recent falls excessive as well.” The won strengthened 0.2 percent to 1,072.53 per dollar as of 11:56 a.m. in Seoul, according to data compiled by Bloomberg. Taiwan’s dollar advanced 0.1 percent to NT$29.090. The Bloomberg-JP Morgan Asia Dollar Index, which tracks the region’s 10 most-traded currencies excluding the yen, rose 0.1 percent. The Institute for Supply Management’s index of U.S. non- manufacturing businesses increased to 53.3 last month from 52.7 in July, data released yesterday showed. The measure was projected to fall to 51, according to the median forecast in a Bloomberg News Survey. A reading above 50 signals expansion. Europe Concern Taiwan’s dollar snapped a three-day losing streak and the Taiex index of shares rose 1.1 percent after Greece said it will step up austerity measures in return for international financing as pressure mounted from European partners before the payment of a sixth tranche of bailout loans. Global funds pulled $1.2 billion from the island’s stock market in the last two days as global recovery concerns and Europe’s debt woes prompted investors to favor safer bets than emerging-market assets. Gains in Asian currencies may be limited as the euro declined against 15 out of 16 major currencies, even after the Swiss National Bank yesterday said “it will no longer tolerate a euro-franc exchange rate below the minimum rate of 1.20 francs.” The Swiss franc reached a record high against the dollar and the euro last month as funds sought refuge in the currency amid the financial turmoil in Europe. “That suggests people are still concerned about the problems in the European Union,” said Ho Woei Chen, a Singapore-based economist at United Overseas Bank Ltd. “I don’t think there will be support for Asian currencies.” Peso Halts Slide The peso halted a two-day slide as Philippine central bank Governor Amando Tetangco said today authorities will prevent “unwarranted” volatility in the currency, which may rise from the Swiss imposition of a ceiling on the franc. The peso was little changed at 42.278 per dollar. “With one less hard currency to share the burden, volatility in the markets can increase, particularly in emerging market economies,” Tetangco said in an e-mail. Bangko Sentral ng Pilipinas will consider the implications of the SNB’s move during tomorrow’s policy meeting, he said. Elsewhere, Thailand’s baht was little changed at 29.93 per dollar, according to data compiled by Bloomberg. Malaysia’s ringgit declined 0.1 percent to 2.9853, while the Singapore dollar and Indonesia’s rupiah fell 0.2 percent to S$1.2087 and 8,575, respectively. China’s yuan dropped 0.03 percent to 6.3927. To contact the reporter on this story: Lilian Karunungan in Singapore at lkarunungan@bloomberg.net To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

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