There was also less pessimism on the near term outlook for regional currencies as the European Central Bank is predicted to extend its asset-purchase scheme on Thursday, reinforcing the yield allure in Asia.
China's yuan reported the smallest bearish bets in nearly two months, according to the survey of 18 fund managers, analysts and currency traders conducted between Tuesday and Thursday.
That came as the country's regulators took measures to stem capital outflows including new rules on overseas yuan loans to curb outbound funds and reduce pressure on the currency.
State-run banks were also suspected of providing dollar liquidity to stabilise the renminbi. These efforts helped the Chinese currency snap a three-week losing streak last week.
Moreover, solid Chinese economic data including Thursday's November trade pointed to a pickup in the world's second-largest economy.
The Malaysian ringgit's pessimistic positions slid to the lowest since late October. Malaysia's central bank on Dec. 2 announced fresh measures to boost liquidity and encourage more domestic trade of the currency in a bid to ease depreciation pressure.
Earlier this month, the ringgit fell to the weakest since September last year when it hit a 17-year low.
DOLLAR TAKES BREATHER
Bearish bets on other emerging Asian currencies slumped as the dollar came off a 13-1/2-year peak against six major currencies. The dollar has been on a tear in the weeks since Trump's victory on Nov. 8 on expectations the new administration will set growth on a higher gear.
Investors were also cautious as US jobs data for November pointed to pockets of weakness in earlier months, raising questions about the pace of Federal Reserve policy tightening next year.
Nonfarm payrolls increased 178,000 jobs last month, but data for September and October were revised to show that fewer jobs were created than previously reported. Wage growth for the month was just 2.5 percent, compared with expectations of 2.8 percent, unchanged from October.
In addition, foreign investors added holdings in some Asian bonds on expectations that the ECB may stay easier for longer.
The Indonesian rupiah's pessimistic bets more than halved as investors sought one of the highest bond yields in Asia.
Pessimistic positions on the South Korean won shrank to the smallest since mid-October, despite a deepening political corruption scandal that could see President Park Geun-hye impeached and possibly prosecuted.
Foreign investors bought South Korea's stocks and bonds this month.
The poll is focused on what analysts and fund managers believe are the current market positions in nine Asian emerging market currencies: the Chinese yuan, South Korean won, Singapore dollar, Indonesian rupiah, Taiwan dollar, Indian rupee, Philippine peso, Malaysian ringgit and the Thai baht.
The poll uses estimates of net long or short positions on a scale of minus 3 to plus 3. A score of plus 3 indicates the market is significantly long US dollars.
The figures include positions held through non-deliverable forwards (NDFs).