South Korea’s won led a weekly advance in Asian currencies as signs of an improvement in the global economy brightened the outlook for the region’s exports and spurred demand for emerging-market assets. The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s most-active currencies, rose 0.1 percent this week and touched 117.87 yesterday, the highest level since February. The won headed for its best week of the month and the yuan was on course for an 11th week of gains, the longest winning streak since March 2008. India’s rupee fell for a second week as the government reported this year’s fastest inflation. China’s factory production, retail sales and fixed-asset investment accelerated in September, data showed yesterday. Retail sales in the U.S., the world’s biggest economy, increased 1.1 percent in September while housing starts climbed 15 percent to a four-year high, reports showed this week. Europ’s leaders committed to their goal of creating a euro-area bank supervisor by year-end, according to officials at a European Union summit in Brussels ending today. “The September data was clearly stronger than expected,� said Nizam Idris, head of Asian fixed income and foreign- exchange at Macquarie Bank Ltd. in Singapore. “The growth momentum will continue. Still, we are at a very early stage of the recovery so it’s too soon to expect� faster gains in Asian currencies including the yuan. The won appreciated 0.5 percent this week to 1,105.36 per dollar as of 11:54 a.m. in Seoul, according to data compiled by Bloomberg. The yuan rose 0.24 percent from Oct. 12 and was little changed today at 6.2521 after touching a 19-year high of 6.2446 yesterday. Taiwan’s dollar climbed 0.3 percent from a week ago to NT$29.274 and was steady today. ‘Positive Data’ The won weakened 0.1 percent today, snapping a six-day rally. It touched 1,102.50 on Oct. 17, the strongest level since 0ct. 31, 2011. South Korea’s economy probably expanded 1.7 percent in the third quarter from a year earlier, the least in three years, a Bloomberg survey showed before data next week. “The won was strong this week on positive data from the U.S., but it seems some overseas investors are covering their short positions on the dollar,� said Lee Jung Hyun, a Seoul- based currency trader for Industrial Bank of Korea. (024110) A short position is a bet an asset will decline in value. China Outlook The yuan has extended its rebound from this year’s low of 6.3967 on July 25 to 2.3 percent after data pointed to an improvement in the world’s second-largest economy. Factory output grew 9.2 percent from a year ago, compared with an 8.9 percent gain in August that was the smallest in three years, official figures showed yesterday. Retail sales advanced 14.2 percent, the most since March, while fixed-asset investment climbed 21 percent in the first three quarters. “We believe China’s economy has bottomed out in August or September,� said Tommy Ong, a Hong Kong-based senior vice- president of treasury and markets at DBS Bank (Hong Kong) Ltd. “Improvement in global liquidity and calls for more appreciation from the U.S. presidential campaign trail are also supporting the yuan.� The rupee lost 1.1 percent from Oct. 12 to close at 53.415 per dollar yesterday amid concern faster inflation will erode returns from local assets. India’s benchmark price index jumped 7.81 percent last month from a year earlier, the most since December, according to figures released Oct. 15. Elsewhere, the Malaysian ringgit declined 0.4 percent to 3.0508, paring a weekly gain to 0.2 percent. Indonesia’s rupiah traded at 9,591, little changed from 9,588 yesterday and last week, prices from local banks compiled by Bloomberg show. The currency reached 9,657 on Oct. 11, the weakest level since October 2009. The Philippines peso fell 0.2 percent to 41.415 today, reducing this week’s appreciation to less than 0.1 percent. Vietnam’s dong traded at 20,850, compared with 20,845 yesterday and 20,855 at the end of last week. To contact the reporter on this story: Kyoungwha Kim in Singapore at kkim19@bloomberg.net To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net.

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