SINGAPORE: Asian currencies were slightly positive on Thursday in the absence of broad catalysts to lift them higher, while caution prevailed on concerns over North Korea and President Donald Trump’s abrupt firing of FBI Director James Comey.

The dollar edged down after notching an eight-week high against the yen on Thursday in Asian trade.

“There is no risk-on or carry trade today, rather cautious trading. I think markets are watching for more cues”, said Vishnu Varathan, senior economist at Mizuho Bank.

The South Korea won was the biggest gainer in the region, rising more than half a percent on hopes of expansionary fiscal policies from the government of newly elected President Moon Jae-In.

“Going forward, the expected political stability after the presidential election should bode well for the KRW while fiscal stimulus will be an added positive on the back of sustained recovery in global demand,” United Overseas Bank said in a report.

The Indian dollar edged up as the NSE index hit a record high on expectations of lower interest rates after a better monsoon forecast eased inflation fears in a country that depends heavily on rains to irrigate its farmlands.

China’s yuan weakened against the US dollar, despite major state-owned banks offering dollar liquidity to meet corporate demand for the dollar.

China’s latest factory-gate prices and manufacturing data have led to concerns on its economic outlook and the impact on Asia.

On Wednesday, the official data showed China’s April producer price inflation rose 6.4 percent from a year earlier, slower than the economist’s expectations for 6.9 percent, and lower than the previous month’s 7.6 percent.

Chinese manufacturing and exports have softened from levels seen in the fourth quarter of last year and early this year, said Varathan.

“It is going to give a lot of caution about not getting too far ahead and long on Asia, typically the exports- focused ones,” he added.

The Philippine peso was slightly weaker on the day, after data showed the country’s trade deficit widened in March.

The central bank is expected to keep the policy rates steady on Thursday. However most analysts expect a rate increase later this year.

With the Philippines set to outperform the region, its central bank is set to become the first in Southeast Asia to raise rates, likely in the fourth quarter, Leong Sook Mei, ASEAN head of global markets research for the Bank of Tokyo-Mitsubishi UFJ in Singapore, wrote in a note.—Reuters