EMERGING MARKETS-Malaysia, Indonesia lead gains as easing bond yields buoy most Asian equities

    * Graphic: World FX rates
    * Emerging Asian bond yields dip 
    * Prospects for global economic recovery brightening- OECD
    * Investors look to U.S. inflation data and bond auctions 

    By Shruti Sonal
    March 10 (Reuters) - Malaysia and Indonesia led gains in the
emerging Asia region on Wednesday, as the easing of bond yields
and brightening prospects for a global economic recovery boosted
appetite for most equities.
    Indonesian 10-year benchmark yields fell nearly
6 basis points, reflecting similar declines in U.S. yields
following a well-received debt auction on Tuesday.
    Shares ticked higher, taking positive cues from an overnight
recovery on Wall Street and a bounce back in Chinese equities. 
    Indonesian, Thai and Malaysian
shares added about 1% each, while Philippines gained
    China's factory gate prices rose at the fastest pace since
November 2018 in February, raising hopes for robust growth in
the world's second-largest economy this year.
    In a further boost to shares, the OECD said on Tuesday that
the global economic outlook has brightened as COVID-19 vaccine
rollouts speed up and the United States launches a new stimulus
    However, analysts were wary of treating the recovery in the
equities market as a sign of a bull run.
    "There appears to be a degree of concession, rather than
bullish conviction, about the breathtaking surge in Nasdaq,"
Mizuho Bank analyst Masayuki Tsunashima said.
    Investors also remained nervous about the easing of bond
yields ahead of key inflation data and bond auctions in the
United States.
    "Any signs of inflation overheating may intensify market
speculation about the Fed tapering stimulus efforts and may fuel
further strength in longer-dated yields as well as the U.S.
dollar," said Margaret Yang, DailyFX Strategist at IG. 
    Elsewhere, concerns over rising inflation remained. A
Reuters poll predicted India's retail inflation probably rose in
February as food and fuel prices went up.
    Singapore shares, which have added over 5% in March
so far, declined 1% on Wednesday, a move attributed by analysts
to profit taking. 
    On the foreign exchange front, most regional currencies
weakened as the U.S. dollar rose, clawing back some of the
losses sustained overnight.
    The Singapore dollar, Malaysian ringgit and
Philippine peso dipped about 0.3% each.
    However, the Taiwan dollar, among the best
performing regional currencies so far this year, strengthened
    The currency has rallied as the country's exports have
surged, driven by global demand for laptops, smartphones and
other gadgets to support the work-from-home trend during the
    The tech powerhouse's booming exports may lead to impressive
economic growth of about 5% this year, the head of the
statistics office said.
    ** Indonesian 3-year benchmark yields are down 13.6 basis
points at 5.6%
    ** Top gainers on the Thailand's SETI include AQ
Estate PCL, Tong Hua Holding PCL, Pan Asia
Footwear PCL
  Asia stock indexes and currencies                        
 at   0755 GMT                                       
                     DAILY        %           DAILY   YTD %
                         %                        %  
 Japan               -0.25    -5.05  <.N225   0.03    5.80
 China    <CNY=CFX   -0.00    +0.30  <.SSEC   -0.05   -3.32
          S>                         >               
 India               -0.01    +0.19  <.NSEI    0.41    8.43
 Indones             -0.03    -2.47  <.JKSE    1.08    4.81
 ia                                  >               
 Malaysi             -0.24    -2.55  <.KLSE    0.91    0.76
 a                                   >               
 Philipp             -0.28    -1.15            0.61   -4.64
 S.Korea  <KRW=KFT   -0.21    -4.94  <.KS11   -0.60    2.95
          C>                         >               
 Singapo             -0.23    -1.92           -1.05    8.16
 Taiwan              +0.28    +0.61  <.TWII    0.37    8.00
 Thailan             -0.03    -2.57  <.SETI    1.14    8.20
 d                                   >               
 (Reporting by Shruti Sonal in Bengaluru; Editing by Anil