Factory activity in Asia shrank further in October on cooling global demand, highlighting the broadening pain the Sino-U.S. trade war is inflicting on manufacturers.

"The broader picture is still one of doubts over the potential bottoming of the Asian cycle," said Chang Wei Liang, macro strategist (FX and credit) at DBS Bank. "Markets are taking a bit of a breather in the meanwhile to assess the incoming data."

The won weakened as much as 0.6% to 1,170.90 per dollar, marking its worst trading session in three weeks, but was on track to firm for a fifth straight week.

South Korea's manufacturing activity contracted for a sixth straight month in October but at a slightly slower pace, a private survey showed on Friday.

Also weighing on the currency, South Korea's exports fell for an 11th straight month in October and by the most in nearly four years as shipments to China kept slowing and computer chip prices plunged, government data showed.

The Indonesian rupiah slipped after a private survey showed the country's factory activity in October contracted further, with a purchasing manager's index hitting a four-year low.

The Indian rupee and the Taiwan dollar were little changed, while the Singapore dollar and the Thai baht inched up.

The Malaysian ringgit added 0.2% as factory activity hit a six-month high, but was still in contraction territory.

The country's central bank is expected to keep its benchmark interest rate unchanged at a policy review next week, according to a Reuters poll, saving its policy ammunition in case global growth falters next year.

The Philippine financial market was closed for a holiday. In offshore trade, the peso firmed 0.3%.

TRADE DEAL DOUBTS

The Chinese yuan weakened marginally to 7.043 per dollar due to renewed uncertainty over whether Beijing and Washington can reach a deal to end their protracted trade war.

Optimism was dampened by a Bloomberg report on Thursday which cited unnamed sources as saying Chinese officials have doubts about whether a comprehensive long-term deal is possible between Beijing and Washington.

However, declines in the currency were curbed after a private business survey on Friday showed China's factory activity unexpectedly expanded at the fastest pace in well over two years in October.

Onshore yuan is set for a fourth consecutive week of gains.

(Reporting by Niyati Shetty in Bengaluru; Editing by Jacqueline Wong)

By Niyati Shetty