Ringgit set for longest run of gains since 2010

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KUALA LUMPUR (Feb 11): Ringgit heads for the longest stretch of gains since 2010, as the dollar consolidates and traders hold out for a breakthrough in China-U.S. trade talks. Malaysian factory output figures are due.

* USD/MYR drops 0.2% to 4.0620, on track for a ninth day of declines

** Support 4.0606, 4.0550, 4.0435; resistance 4.1045, 4.1424, 4.1518

** READ: Trump’s Advisers Discussed Holding March Summit With Xi: Axios

* Asian currencies are tracking gains in the yuan; PBOC sets CNY reference rate at 6.7495 per USD on return from Lunar New Year holidays, stronger than analysts’ estimate of 6.7522

* CNY fixing on Monday will offer markets a guide, says Mitul Kotecha, a senior emerging-market strategist at TD Securities in Singapore

** China’s trade data will also be a key driver this week, with markets expected to be on guard given that the report will likely show a deterioration

* Malaysia’s 10-year govt bond yield gains 1bp to 4.01%

* Govt aims to complete sale of Samurai bonds by end-March, with proceeds to be converted to ringgit: Finance Minister Lim Guan Eng

* Nissay Asset Management is underweight Malaysian bonds as the govt’s populist policies make it hard for the central bank to raise rates, and there are concerns the fiscal deficit will grow

* Industrial production seen +2.7% in December y/y vs +2.5% in November: Bloomberg survey ahead of data due at noon local time

* Standard Chartered on Friday dismissed talk that it may sell its Islamic banking unit in Malaysia

* Former PM Najib Razak faces 42 counts of corruption and money- laundering charges related to state fund 1MDB in a trial that starts Tuesday