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EMERGING MARKETS-Philippines gains, Asian currencies quiet ahead of U.S. inflation data

    * China PPI rises at fastest pace in over 12 years, CPI
misses
forecast
    * 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 vaulted Philippine
shares to a three-month high on Wednesday, while Asian
currencies stuck to tight ranges ahead of U.S. inflation data
that could offer clues on the Federal Reserve's stance on
tapering monetary stimulus.
    Most of the region's currencies were flat to slightly lower,
with the Taiwan dollar down 0.2%. 
    Asian investors have adopted a cautious view so far this
week, as the dollar stands to gain if signs of price pressure
prompt the Fed to start discussing early tapering at its policy
meeting next week. 
    Economists reckon U.S. inflation in May will rise 0.4% from
the previous 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, where it continued
to trade in Asian hours.
    "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, though that was yet
to seep into consumer inflation.
    "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 edged higher, while the
yuan gained 0.1%, in line with the broader region. 
    Philippine stocks stood out from a mixed picture in
Asia with a 1.4% jump, as both imports and exports surged in
April off lower bases last year.
    The trade deficit came in at $2.73 billion, with ING saying
the Philippine current account surplus may move closer to a
deficit by year-end. The peso edged higher. 
        
    HIGHLIGHTS:
    ** Ayala Corp, Ayala Land Inc and Jollibee
Foods Corp were the top gainers in the Philippines
    ** Indonesian 10-year benchmark yields fell 1.09 basis
points to 6.435%​​ 
    ** Indonesia raises 34 trln rupiah from debt auction, above
target
    
  Asia stock indexes and currencies at   0627 GMT
 COUNTRY      FX RIC      FX       FX     INDEX    STOCKS   STOCKS
                          DAILY %  YTD %           DAILY %  YTD %
 Japan                    +0.02    -5.69           -0.35    5.16
 China                    +0.10    +2.10           0.09     3.17
 India                    -0.14    +0.10           0.28     12.89
 Indonesia                -0.07    -1.54           0.15     0.49
 Malaysia                 +0.05    -2.36           -0.19    -2.60
 Philippines              +0.08    +0.52           1.36     -3.32
 S.Korea                  -0.09    -2.60           -0.86    12.06
 Singapore                -0.05    -0.23           -0.26    11.08
 Taiwan                   -0.21    +2.60           -0.64    15.16
 Thailand                 +0.19    -3.82           0.65     12.01
 
 (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by
Simon Cameron-Moore and Devika Syamnath)
  
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