Most emerging Asian currencies rose on Tuesday as traders were encouraged by positive developments in talks between Chinese Premier Xi Jinping and US President Joe Biden, with the South Korean won hovering at its strongest level in two weeks.

Jinping and Biden opened talks warmly and stressed their responsibility to avoid conflict. They are expected to discuss a range of issues including tariffs on China imposed by former US President Donald Trump.

Against the backdrop, China's yuan hit its highest in more than five months. The Thai baht and the Singapore dollar firmed 0.1% each, while the South Korean won rose as much as 0.3%.

"Expect some sort of loose agreement to get reparations of trade relations back on track, and at best agreeing to disagree on issues surrounding Taiwan, South China Sea and Hong Kong," said Vishnu Varathan, an analyst at Mizuho, in a note.

Maybank analysts said the yuan's resilience seemed to be "anchoring stability" among Asian emerging market currencies.

In the stock market, the Jakarta benchmark was up 0.6% to lead gains and was on track for its best day in a week.

The Indonesian rupiah swung between small gains and losses as investors awaited Bank Indonesia's (BI) policy meeting on Thursday. The central bank is expected to keep interest rates unchanged to aid an economic recovery from the COVID-19 pandemic, according to a Reuters poll.

Goldman Sachs analysts did not expect BI to start unwinding pandemic-era policy until next year, according to a research note over the weekend.

"Improving activity, rising inflation and US Federal Reserve policy tightening are likely to push BI to normalize policy settings, starting in the second-quarter of 2022," the Goldman Sachs analysts said.

Thai stocks extended gains to a fourth session and hit their highest in nearly a month after the government on Monday forecast higher growth for 2021, with more stimulus set to be introduced.

On the downside, losses in local industrial stocks dragged the Philippine stock benchmark by 0.5%, while the peso weakened 0.3%.

The Philippine central bank is expected to stand pat on interest rates when it meets on Thursday for a policy review, according to a separate Reuters poll.

Shares in South Korea, Singapore and India were flat.

Highlights:

**Indonesian 10-year benchmark yields are down 0.6 basis points at 6.182%

**Malaysia's 10-year benchmark yield is unchanged at 3.562%

**Aboitiz Equity Ventures and San Miguel Corp shed over 2%, each on the Philippine stock exchange