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EMERGING MARKETS-Asian stocks spooked by U.S. inflation spike; Taiwan stocks extend slide

    * Graphic: World FX rates tmsnrt.rs/2egbfVh
    * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3f2vwbA
    * U.S. April inflation rises by most in nearly 12 years
    * Outlook for EM financial assets troublesome - BCA Research
    * Taiwan stocks end lower, down 9.3% so far this week

    By Rashmi Ashok
    May 13 (Reuters) - Asian equities fell on Thursday after
data showing a jump in U.S. inflation reinforced fears that the
Federal Reserve would raise interest rates sooner than planned,
while Taiwan's stocks slumped for a third session on fears of a
COVID-19 resurgence.
    Currencies were also broadly weaker as the U.S. dollar stood
tall following the inflation data, with the South Korean won
 down 0.5% to a six-week low, while the Thai baht
 was off 0.4%.
    Markets in India, Indonesia, Malaysia, Singapore and the
Philippines were closed for the Eid festival.
    Overnight, U.S. stocks tumbled after data showed consumer
prices increased by the most in nearly 12 years last month,
raising bets of a Fed rate hike as early as December next year.

    Higher U.S. rates put pressure on Asian markets, which
yield-seekers usually prefer given their relatively higher
interest rates. Furthermore, resurgences of COVID-19 would make
it harder for Asian central banks to match a potential rate-hike
cycle in the United States.
    "Rising U.S. bond yields and a budding global risk-off move
will likely trigger a rebound in the greenback," analysts at BCA
Research wrote.
    "The outlook for EM financial assets remains troublesome and
we continue underweighting EM equities and credit versus their
developed market peers."
    Shares in Taipei ended 1.5% lower despite reports
that the island's finance ministry called state-owned banks to
"suggest" they buy stocks amid steep falls in the stock market,
according to Reuters sources.
    The index fell 4% on Wednesday after authorities warned that
Taiwan could face tighter restrictions that would shut
non-essential businesses, after a rise in new domestic COVID-19
infections earlier this week.
    In the previous two sessions, the stock index lost nearly
8%. By April-end, it had clocked a massive 100% rise from lows
touched in March last year, as demand for its electronics
exports skyrocketed due to the shift to working from home.
    
    HIGHLIGHTS
    ** Equities in Thailand fell nearly 1%, with energy
firms PTT down 0.6% and Gulf Energy Development
 down 1.5%
    ** Thailand's 10-year government bond yields are up 2 basis
points at 1.68%​​, while the 3-year benchmark yield is up 1
basis point at 0.57%​​ 
    ** Japanese stocks decline 2.5% to a 4-month low; SoftBank
Group tumbles as tech shares come under pressure 

  Asia stock indexes and                              
 currencies at   0642 GMT                        
 COUNTRY  FX RIC        FX     FX  INDE  STOCKS  STOCK
                     DAILY  YTD %     X   DAILY  S YTD
                         %                    %      %
 Japan               +0.05  -5.79  <.N2   -2.49   0.01
                                   25>           
 China    <CNY=CFX   +0.11  +1.20  <.SS   -1.13  -1.43
          S>                       EC>           
 S.Korea  <KRW=KFT   -0.41  -3.82  <.KS   -1.25   8.65
          C>                       11>           
 Taiwan              -0.09  +1.80  <.TW   -1.46   6.36
                                   II>           
 Thailan             -0.35  -4.37  <.SE   -0.96   7.41
 d                                 TI>           
 

 (Reporting by Rashmi Ashok in Bengaluru; Editing by Subhranshu
Sahu)
  
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