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

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

* 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 ID10YT=RR 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 .JKSE , Thai .SETI and Malaysian .KLSE shares added about 1% each, while Philippines .PSI gained 0.6%.

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. 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 package. 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. 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. shares .STI , 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 SGD= , Malaysian ringgit MYR= and Philippine peso PHP= dipped about 0.3% each.

However, the Taiwan dollar TWD=TP , among the best performing regional currencies so far this year, strengthened 0.3%.

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 pandemic.

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 .SETI include AQ Estate PCL AQ.BK , Tong Hua Holding PCL TH.BK , Pan Asia Footwear PCL PAF.BK

Asia stock indexes and currencies

at 0755 GMT

COUNTRY FX RIC

FX FX YTD INDEX STOCKS STOCKS

DAILY

%

DAILY YTD %

%

%

Japan

JPY=

-0.25

-5.05 <.N225 0.03

5.80

>

China

+0.30 <.SSEC -0.05 -3.32

S>

>

India

INR=IN

-0.01

+0.19 <.NSEI

0.41

8.43

>

Indones IDR=

-0.03

-2.47 <.JKSE

1.08

4.81 ia

>

Malaysi MYR=

-0.24

-2.55 <.KLSE

0.91

0.76 a

>

Philipp PHP=

-0.28

-1.15 .PSI

0.61 -4.64 ines

S.Korea

-4.94 <.KS11 -0.60

2.95

C>

>

Singapo SGD=

-0.23

-1.92 .STI

-1.05

8.16 re

Taiwan

TWD=TP

+0.28

+0.61 <.TWII

0.37

8.00

>

Thailan THB=TH

-0.03

-2.57 <.SETI

1.14

8.20 d

>