BANGKOK, Dec 5 : Most Asian emerging currencies rose on Monday, with the Chinese yuan and Vietnam's dong leading gains, as a softer U.S. dollar and signs of China easing its strict zero-COVID strategy supported investors' appetite for riskier assets.

The yuan appreciated 1.4% against the dollar, hitting its highest since Sept. 15 as the dollar index fell 0.3% at 104.17.

Stocks in Shanghai advanced more than 1%. Steps taken in some Chinese cities to ease coronavirus curbs raised hopes of increased demand for commodities in Southeast Asia's biggest trading partner.

"China remains a dominant driver, and the good news has been rolling in - through the weekend we've heard more news with Shanghai and Hangzhou easing restrictions, with PCR tests no longer needed to visit certain public venues," said Chris Weston, head of research at broker Pepperstone.

Analysts at OCBC expect a changing US Federal Reserve policy and China reopening to result in a rebalancing of portfolio flows to Asia, "especially when allocations in Asia may have been lower than usual amid the sell-off seen in most parts of 2022".

The Vietnamese dong strengthened 1.9% and posted its best session since September 2010 on flows from foreign borrowings by Vietnam Technological And Commercial Joint Stock Bank and Masan Group, according to a market source.

South Korea's won firmed 0.7%, while Singapore's dollar advanced 0.5% to hit its highest since February 23. Malaysia's ringgit, which has lost 4.6% so far this year, appreciated 0.5% to hit its highest level since May 6.

Since last week, the currency has drawn support from the appointment of Anwar Ibrahim as prime minister. Anwar, who will also serve as Malaysia's finance minister, announced new cabinet appointments on Friday.

Markets now await a revised 2023 budget before the year end. "The unveiling of the new cabinet 'relatively' quickly helped removed some political uncertainty," analysts at Maybank wrote in a note.

Elsewhere, the Philippines lowered its growth target for 2023 to 6.0%-7.0%, from 6.5%-8.0% and revised its foreign exchange rate assumptions for 2022-2024. The peso depreciated 0.1%, while stocks in Manila rose 0.5%.

Among stock markets, China's benchmark index led gains as it surged 1.6%. Equities in Kuala Lumpur and Seoul declined 0.6% and 0.7%, respectively.

Markets in Thailand were closed on account of a public holiday.

 - Reuters