EMERGING MARKETS-Asian currencies edge higher, Philippine stocks at 3-month high

    * China PPI rises at fastest pace in over 12-years, CPI
    * U.S. 10-year bond yields fall to 1-month low overnight
    * Philippine exports and imports surge in April

    June 9 (Reuters) - Strong trade data helped Philippine
shares strike an over three-month high on Wednesday, while
Asia's emerging currencies firmed ahead of a U.S. inflation
report that might give a clue to when the Federal Reserve will
begin tapering its monetary stimulus.
    The Philippine peso and Thai baht gained
around 0.2% on the U.S. dollar.
    Asian investors have adopted a cautious view so far this
week, looking to signs price pressure may prompt the Federal
Reserve to start discussing early tapering at its policy meeting
next week, which could boost the dollar. 
    Economists reckon inflation in May will rise 0.4% over the
preceding month, but recent payrolls data showed job hiring did
not grow as fast as expected and overnight 10-year Treasury
yields fell to a one-month low. 
    "Maybe bond markets are absolutely right. The inflation we
are seeing ... is just transitory," Robert Carnell, the
Asia-Pacific head of research for ING, said. 
    In China, the world's second largest economy, producer
prices rose at their fastest annual pace in over 12 years in
May, largely due to higher commodity prices, but that didn't
translate into much higher consumer prices.
   The producer price index (PPI) increased 9% from a year
earlier, versus a 8.5% forecast in a Reuters poll and the 6.8%
rise in April. Meanwhile, the consumer price index (CPI) rose
1.3%, slower than the 1.6% expected. 
    "Despite risks of some degree of lagged spillover from PPI,
the wider point is that the ability of China's supply-side to
absorb excessive cost-push mitigates inflation risks," Mizuho
bank said in a note.
    Shanghai's composite index rose 0.4%, while the yuan
 gained 0.1%.
    Philippine stocks rose 1.5%, amid a mixed picture in
Asia, as both imports and exports surged in April off lower
bases last year.
    The trade deficit came in at $2.73 billion. ING says the
Philippines current account surplus may move closer to a deficit
by year-end. 
    ** Emperador Inc, Ayala Corp and Jollibee
Foods Corp were the top gainers in the Phiippines
    ** Indonesian 10-year benchmark yields fell 0.70 basis
points to 6.439%​​ 
    ** Indonesia raises 34 trln rupiah from debt auction, above
  Asia stock indexes and currencies at   0342 GMT
 COUNTRY      FX RIC      FX       FX     INDEX    STOCKS   STOCKS
                          DAILY %  YTD %           DAILY %  YTD %
 Japan                    +0.04    -5.67           -0.33    5.19
 China                    +0.10    +2.09           0.36     3.46
 India                    +0.00    +0.24           0.00     12.58
 Indonesia                +0.00    -1.47           0.43     0.77
 Malaysia                 +0.07    -2.33           -0.20    -2.61
 Philippines              +0.17    +0.61           1.46     -3.23
 S.Korea                  -0.08    -2.59           -0.29    12.70
 Singapore                +0.04    -0.15           -0.27    11.07
 Taiwan                   -0.12    +2.69           -0.34    15.52
 Thailand                 +0.22    -3.79           0.72     12.08
 (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by
Simon Cameron-Moore)