SINGAPORE: The South Korean won led gains in emerging Asian currencies on Monday as the yen rebounded from a seven-year low struck after data showed Japan's economy unexpectedly slipped into recession, hitting Tokyo stocks.
The won recovered from a 14-month trough to outperform regional units as the currency is more sensitive to the yen than its peers.
The South Korean currency also found support from demand by exporters for settlements and stop-loss dollar selling.
Thailand's baht gained as the central bank lowered expectations for an interest rate cut, even though third quarter economic growth missed expectations.
The Philippine peso edged up on remittance inflows from overseas Filipino workers, but gave up some of those gains after the country's main tax agency missed a revenue goal in October.
The yen hit a seven-year low against the dollar after data showed Japan's economy contracted an annualised 1.6 percent in the third quarter, reinforcing expectations of a snap election and delay a sales tax hike next year.
The yen reversed course as slumping Tokyo shares prompted investors to unwind short positions.
Many investors, especially foreigners, sell the yen to hedge their stock positions, so the Japanese currency tends to rise when equities fall.
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