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EMERGING MARKETS-Mexican Peso, Asian currencies slump as U.S. vote tightens

    * Mexican peso, Chinese yuan slump
    * Asian shares closely track U.S. stock futures
    * Philippine shares gain the most  
    * Graphic: World FX rates tmsnrt.rs/2egbfVh
    * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3lKhL5I

    By Shriya Ramakrishnan
    Nov 4 (Reuters) - Mexico's peso and several Asian currencies
seen as most exposed to four more years of a Donald Trump White
House fell on Wednesday as early projections in the U.S.
presidential election hinted at a very tight race.
    With early counting showing Trump ahead of Democratic rival
Joe Biden in the vital battleground state of Florida and several
swing states, the peso lost as much as 4% in late night
trade before recovering some ground.
    A half percent fall for China's yuan led losses
in Asia, with the Korean won and Singapore dollar
 -- both seen as exposed to the trade tensions that have
marked Trump's first term -- down 0.3% and 0.4%. 
    The peso is highly sensitive to both political and economic
developments of the United States, its closest trading partner.
Implied volatility for peso-dollar derivatives stood
at their highest since late April. 
    "I don't know if the market is again predicting a tough
stance against Mexico but I'll be surprised given a lot of the
issues seems to have been dealt with," said Mitul Kotecha,
Senior EM Strategist at TD Securities. 
    "Perhaps they are coming back to a relationship under a
Trump administration (that) may be less conducive from a trade
perspective." 
    Betting market odds on the U.S. presidential election have
flipped to favour Trump over Biden, according to data from two
aggregators.
    Analysts said that pointed to the potential for more of the
clashes with Beijing that have dominated recent years and
weighed on several of the Asian economies which tend to track
China and rely on it as a source of growth.
    "If it's a Trump administration, it's going to be the same,
maybe accentuated, because he has nothing to fear. The cold war
with China will be worse," said Tim Ghriskey, chief investment
strategist at Inverness Counsel in New York.        
    Stock markets had earlier appeared to be pricing in a
victory for Biden that would be expected to adopt a steadier
foreign and trade policy overall and a less combative stance on
China.
    Most of the region's big share indexes were still higher in
midday trade, with Philippine shares up almost 2% after
data showed the country posted its first monthly rise in exports
since February. 
    Among other Asian currencies, tech- and trade-heavy Taiwan's
dollar stood out again with a more than 1% rise, while
the Indonesian rupiah at a near three-month high against
the U.S. dollar.
    Analysts at Deutsche Bank earlier this week said in a note
that the rupiah would be the best hedge among Asian currencies
against a Trump victory scenario.

    HIGHLIGHTS:
    ** Thailand's 10-year government bond yields are up 1 basis
points at 1.4%
    **In the Philippines, top index gainers are Bloomberry
Resorts Corp up 4.34% at 7.7 peso, Metropolitan Bank
and Trust Co up 3.07% at 41.95 peso, Robinsons Land
Corp up ​ 2.89% at 15.64 peso
    ** Top gainers on the Singapore STI include Singapore
Telecommunications Ltd up 2.44% at S$2.1, Singapore
Technologies Engineering Ltd up 1.14% at S$3.56, SATS
Ltd up ​ 0.97% at S$3.13
    
    
  Asia stock indexes and                                  
 currencies at   0446 GMT                           
 COUNTRY   FX RIC        FX     FX    INDEX  STOCK  STOCKS
                      DAILY  YTD %               S   YTD %
                          %                  DAILY  
                                                 %  
 Japan                -0.37  +3.59            2.08    0.52
 China     <CNY=CFXS  -0.46  +3.80            0.03    7.28
           >                                        
 India                -0.38  -4.43            0.67   -2.27
 Indonesi             +0.34  -4.41            0.13  -17.99
 a                                                  
 Malaysia             -0.22  -1.78            0.50   -7.55
 Philippi             -0.03  +4.79            1.89  -17.40
 nes                                                
 S.Korea   <KRW=KFTC  -0.28  +1.68            0.45    7.10
           >                                        
 Singapor             -0.43  -1.55            0.80  -21.90
 e                                                  
 Taiwan               +0.94  +5.08            0.81    7.01
 Thailand             -0.29  -3.92            0.14  -22.58
 



 (Reporting by Shriya Ramakrishnan in Bengaluru; Editing by
Patrick Graham and Kim Coghill)
  

Nuestros Estándares: Los principios Thomson Reuters.

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