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EM ASIA FX-Stable yuan supports Asia FX; doubts over rebound remain

* Yuan firm after 6-yr low on corporate dollar sales
    * China c.bank deputy says yuan to be broadly stable - paper
    * Baht up on bond inflows; won over 1-week low on outflows

 (Adds text, updates prices)
    By Jongwoo Cheon
    SINGAPORE, Oct 25 (Reuters) - Most emerging Asian currencies
edged up on a stable Chinese yuan on Tuesday, although regional
units stayed under pressure as solid U.S. manufacturing data and
a Federal Reserve official's comments cemented expectations of
December tightening.
    The yuan started the onshore trading at a
six-year low of 6.7787 per dollar, tracking a weak central bank
guidance rate, but the Chinese currency turned the
depreciation path on corporate dollar selling. 
    The deputy governor of the People's Bank of China said in a
newspaper editorial that there is no basis for continuous
depreciation of the renminbi and the exchange rate will remain
broadly stable. 
    The yuan on Monday recovered some of its losses as large
state-owned banks sold dollars in an apparent effort to slow a
rapid decline, traders said.
    A stable yuan helped other emerging Asian currencies such as
the Taiwan dollar and the Singapore dollar.
    Thailand's baht outperformed on bond inflows.
    Still, expectations of a Fed interest rate increase in
December hurt sentiment towards regional currencies.
Uncertainties over U.S. elections in November and China's
economic recovery also weighed on them.
    The South Korean won slumped to its weakest level
in more than a week as foreign investors sold the country's
stocks and bonds.
    "We are seeing temporary stabilisation in EM Asia FX. But a
rebound is unlikely," said Nordea Markets' chief analyst Amy
Yuan Zhuang in Singapore.
    "The Fed policy, U.S. election and China risks will affect
Asia. Especially, China risk may not be fully priced in
currently in Asian FX due to the latest macro stabilisation,"
Zhuang said.
    She said China is not expected to devalue the yuan but the
market will nonetheless fear devaluation if the current
weakening continues and breaks through 6.8.
    The U.S. dollar hovered near a nine-month peak against six
major currencies as preliminary Markit survey on Monday
showed manufacturing activity levels reached a one-year high
this month. 
    Chicago Fed President Charles Evans said on Monday the Fed
could raise rates three times between now and the end of 2017,
so long as inflation expectations and the labour market continue
to improve. 
    
    BAHT
    The baht gained as foreign investors continued to buy Thai
bonds, seeing the recent selloff as excessive, given hopes for
calm after King Bhumibol Adulyadej, the world's longest-reigning
monarch, died earlier this month.
    Local interbank speculators also covered some of bearish
bets on the currency, while foreign currency traders took a
breather.
    The baht gave up some of earlier gains due to a lack of
signs that the local equity market started seeing a
return of foreign inflows yet.
    
    WON
    The won lost as much as 0.8 percent to 1,139.6 per dollar,
its weakest since Oct. 17.
    Offshore funds sold the currency as foreign investors were
set to become net sellers in South Korea's main stock exchange
 after a buying spree over the previous eight consecutive
sessions.
    Foreign investors were also seen extending a selling streak
in the domestic bond market.
    The selling came as data showed South Korea's economic
growth is expected to meet the central bank's 2.7 percent
forecast this year with third-quarter growth higher than
expected. That underscored expectations that Bank of Korea is
more likely to observe than act on monetary policy. 
    The South Korean currency recovered some of the losses on
expectations of exporters' month-end demand, while such
corporate bids were not that strong, traders said.
    
    CURRENCIES VS U.S. DOLLAR
    Change on the day at 0510 GMT
  Currency               Latest bid   Previous day  Pct Move
  Japan yen                  104.36         104.18     -0.18
  Sing dlr                   1.3925         1.3932     +0.05
  Taiwan dlr                 31.615         31.683     +0.22
  Korean won                1136.20        1131.00     -0.46
  Baht                        35.01          35.12     +0.32
  Peso                       48.315         48.190     -0.26
  Rupiah                      13011          13012     +0.01
  Rupee                       66.88          66.85     -0.06
  Ringgit                    4.1725         4.1750     +0.06
  Yuan                       6.7760         6.7775     +0.02
                                                            
  Change so far in 2016                                     
  Currency               Latest bid  End prev year  Pct Move
  Japan yen                  104.36         120.30    +15.27
  Sing dlr                   1.3925         1.4177     +1.81
  Taiwan dlr                 31.615         33.066     +4.59
  Korean won                1136.20        1172.50     +3.19
  Baht                        35.01          36.00     +2.83
  Peso                        48.32          47.06     -2.60
  Rupiah                      13011          13785     +5.95
  Rupee                       66.88          66.15     -1.10
  Ringgit                    4.1725         4.2935     +2.90
  Yuan                       6.7760         6.4936     -4.17
 
 (Reporting by Jongwoo Cheon; Additional reporting by Satawasin
Staporncharnchai in BANGKOK; Editing by Gopakumar Warrier)
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