EM ASIA FX-Deutsche Bank woes haunt Asia FX; monthly, quarterly gains seen

* Philippine peso to see worst month in 16 years

* Philippine's Duterte linked himself to Hitler

* Rupee up on pause in India-Pakistan geopolitical tension

* Won, rupiah lead September EM Asia FX appreciation

(Adds text, updates prices)

By Jongwoo Cheon

SINGAPORE, Sept 30 (Reuters) - Most emerging Asian

currencies fell on Friday as worries about Deutsche Bank soured

risk sentiment, darkening the outlook for the regional units,

despite monthly and quarterly gains on expectations of gradual

U.S. interest rate hikes.

India's rupee avoided the losses seen in regional

peers on a pause in the escalation of ongoing India-Pakistan

geopolitical tensions.

The Philippine peso hit a fresh seven-year low to

suffer its worst month in 16 years as on deepening fears that

President Rodrigo Duterte's policies may keep driving foreign

investors out of the country.

Malaysia's ringgit fell to a 1-1/2-week trough as

month-end corporate dollar demand offset support from higher oil

prices.

Asian shares slid as Deutsche Bank shares slumped

to a record low after a report that trading clients had

withdrawn excess cash and positions held in the largest German

lender.

"Given the nightmare of Lehman, markets shun risky assets

including Asian currencies as potential systemic risks in the

banking sector are enormous," said Jung Sung-yoon, a foreign

exchange analyst at Hyundai Futures in Seoul.

The collapse of Lehman Brothers sparked the global financial

crisis in 2008-09.

"Momentum in Asian currencies may slow down in the coming

months on the global risk aversion, as well as uncertainties

surrounding global monetary policies and the U.S. elections,"

Jung said.

RUPIAH, WON

Most emerging Asian currencies were set to report gains in

September and the third quarter as top Federal Reserve officials

hinted that the U.S. central bank may only raise interest rates

very gradually.

Indonesia's rupiah has risen 2.1 percent against

the dollar so far this month on tax amnesty-related inflows and

as investors sought one of the highest bond yields in Asia. With

the monthly rise, the currency was on the course for a 1.7

percent quarterly gain.

The South Korean won has appreciated 1.4 percent

over September, extending its quarterly gain to a 4.8 percent.

That would be the largest quarterly rise since the April-June

2014. Equity inflows and exporters' demand for settlements

boosted the currency.

Taiwan's dollar has risen 1.3 percent so far this

month to post its largest quarterly gain since early 2011 as

foreigners snapped up local shares.

However, doubts over further strength in emerging Asian

currencies surfaced.

November's U.S. presidential election and December's

expected Fed policy decision presented high event risks, said

Emmanuel Ng, foreign exchange strategist at OCBC Bank in

Singapore.

Ng said it was even unclear whether the Fed would raise

interest rates in December or merely reiterate its intention to

tighten gradually.

Some regional units were set to experience monthly and

quarterly depreciation.

The peso has lost 3.9 percent so far in September, which

would be its largest monthly loss since October 2000.

Philippine President Duterte on Friday appeared to liken

himself to Adolf Hitler, saying he would "be happy" to

exterminate three million drug users and peddlers in the

country.

The large number of killings in his war on drugs has drawn

widespread international criticism, including from the United

Nations, triggering angry responses from Duterte. His

anti-American outbursts have startled investors.

The ringgit has fallen 2.2 percent through September,

increasing its quarterly loss to 2.8 percent, as Malaysian

government bond prices fell on the absence of further

monetary easing by major central banks.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0450 GMT

Currency Latest bid Previous day Pct Move

Japan yen 101.24 101.04 -0.20

Sing dlr 1.3652 1.3642 -0.07

Taiwan dlr 31.320 31.356 +0.11

Korean won 1099.50 1098.80 -0.06

Baht 34.69 34.63 -0.17

Peso 48.485 48.330 -0.32

Rupiah 12995 12970 -0.19

Rupee 66.66 66.85 +0.28

Ringgit 4.1410 4.1220 -0.46

Yuan 6.6698 6.6695 -0.00

Change so far in 2016

Currency Latest bid End prev year Pct Move

Japan yen 101.24 120.30 +18.83

Sing dlr 1.3652 1.4177 +3.85

Taiwan dlr 31.320 33.066 +5.57

Korean won 1099.50 1172.50 +6.64

Baht 34.69 36.00 +3.78

Peso 48.49 47.06 -2.94

Rupiah 12995 13785 +6.08

Rupee 66.66 66.15 -0.76

Ringgit 4.1410 4.2935 +3.68

Yuan 6.6698 6.4936 -2.64

(Reporting by Jongwoo Cheon; Editing by Eric Meijer)