Asian currencies rallied after Singapore reported record economic growth and Intel Corp., the world’s biggest chipmaker, had its highest-ever quarterly sales.

Benchmark stock indexes advanced across the Asia-Pacific region after Singapore today said gross domestic product rose at an 18.1% pace in the first half of the year, prompting the government to raise its 2010 growth forecast. Greece yesterday sold bonds at a rate lower than it pays for European aid, easing concern about Europe’s debt crisis.

 

“The Singapore and Intel numbers suggest that global growth is recovering and is far more stable than what the market is pricing in,” said Wai Ho Leong, a regional economist at Barclays Plc in Singapore.

 

South Korea’s won climbed 1.1% to 1,199.25 versus the greenback, snapping a two-day decline, as of 12:36 p.m. in Seoul. Singapore’s dollar rose 0.4% to $1.3762, earlier touching a three-week high of $1.3733, and Taiwan’s dollar gained 0.5% to NT$32.14 ($1.38).

 

Singapore said its GDP expanded at a 26% annual pace in the second quarter and revised its estimate for the previous three months to 46%. The government raised its 2010 growth forecast to as much as 15% from a maximum 9%, the third increase this year. South Korea last month boosted its projection to 5.8% from 5%.

 

Singapore’s central bank, which uses the exchange rate rather than interest rates to conduct monetary policy, said in April that it will seek a “modest and gradual appreciation” in the local dollar after shifting to a stronger range for currency fluctuations. Its next biannual review is in October.

“The Monetary Authority of Singapore may at the very least maintain a modest and gradual appreciation stance for the currency at the next policy meeting,” Leong of Barclays said. Further tightening is possible in October should inflation gather pace, he added.

 

Taiwan’s dollar rose the most in three weeks on bets more cash will flow to the island after the People’s Bank of China gave its approval for Bank of China (Hong Kong). to settle yuan transactions for Taiwanese banks. The move comes after the two governments on June 29 signed an Economic Cooperation Framework Agreement aimed at spurring trade and investment between their economies.

 

“People expect some capital inflows to Taiwan from mainland China,” said Tarsicio Tong, a currency trader at Union Bank of Taiwan in Taipei. “The stock market is up. Everything is good, especially the relationship with China.”

 

Elsewhere, the Philippine peso and Malaysia’s ringgit rose 0.3% to 46.278 and 3.196, respectively, against the dollar. Indonesia’s rupiah was little changed at 9,049 and Thailand’s baht gained 0.1% to 32.33