Most Asian currencies, stocks rise as dollar weakens

Most Asian emerging stock markets and currencies rose on Friday against a softer dollar, after China's move to drop key parts of its stringent zero-COVID regime improved sentiment, although there was caution ahead of a week full of risk events, including the U.S. Federal Reserve's policy meeting due next week.

The South Korean won USDKRW strengthened 1.3% to lead gains among the region's currencies. The Singapore dollar <SGD=> firmed 0.2% and India's rupee USDINR appreciated 0.3%. Philippine's peso USDPHP inched up 0.1%.

"The attempt for some breather to end the week could be at play, but mostly wait-and-see sentiments could prevail," Yeap Jun Rong, a market analyst at IG, said in a note.

Markets are focused on U.S. producer price inflation figures later in the day, and the country's consumer inflation data due next week for signs on the pace of the Fed's tightening cycle.

The policy-setting Federal Open Market Committee is a key event that will begin on Dec. 13.

Meanwhile, China, the world's second-largest economy and the region's biggest trading partner, dropped key parts of its stringent zero-COVID regime .

The dollar index DXY, which measures the greenback against six counterparts, retreated 0.2% to 104.61.

Indonesia's rupiah USDIDR advanced 0.2% on Friday, but the currency was on track to lose 1% this week. Stocks in Jakarta COMPOSITE fell for a seventh straight session as they declined 1.4%.

For the week, the rupee USDINR was set to sink 1.1%, while the peso USDPHP was on track to rise 0.7% this week and mark its third straight week of gains.

Thailand's baht USDTHB weakened 0.4%, while equities in Bangkok SET rose 0.2%.

The baht might not depreciate much further. 34.80 could be the first resistance zone and the next zone would be 35.00," said Poon Panichpibool, a markets strategist at Krung Thai Bank.

Stock markets in Southeast Asia were broadly trading higher, with equities in Seoul KOSPI up 0.7% and stocks in Kuala Lumpur BURSA advancing 0.3%.

Equities in Singapore STI added 0.2%. Philippine's benchmark index PPSEI rose 0.5% after a public holiday.

HIGHLIGHTS:

** China's producer prices fall , consumer inflation slows on soft demand

** GoTo Gojek Tokopedia GGOTO leads losses on Indonesia's benchmark index COMPOSITE. Stock down 55.7% since Nov. 21

** Indonesia to let former politicians head c. bank, asks BI to support growth

The following table shows rates for Asian currencies against the dollar at 0628 GMT.