* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Taiwan stocks add 0.6% after sell-off on Wednesday
* Oil prices fall, hurting Thai energy companies
* Various markets closed on Eid holiday
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 o raise interest rates sooner than
expected, while Taiwan's stocks attempted a recovery from the
previous day's slump.
Currencies were also broadly weaker as the U.S. dollar stood
tall following the inflation data, with the South Korean won
KRW=KFTC down 0.5% to a six-week low, while the Thai baht
THB=TH was off 0.4%.
Markets in India, Indonesia, Malaysia, Philippines and
Singapore remained closed for the Eid festival.
Overnight, U.S. stocks tumbled after data showed consumer
prices increased by the most in nearly 12 years in April as
booming demand pushed against supply constraints, raising bets
of a rate hike as soon as December next year. Higher U.S. rates puts pressure on Asian markets, which
yield-seekers usually prefer given their relatively higher
interest rates. Furthermore, resurgences of COVID-19 make it
harder for Asian centyral banks to match a rate-hiking cycle.
If U.S. inflation data does not calm in the next few months,
the challenge to the Fed's credibility over its insistence that
inflation is only transitory could be disruptive, Tai Hui, chief
Asia market strategist at J.P. Morgan Asset Management, wrote.
"Asia will probably follow the U.S. in the near term, except
for the Chinese onshore market. COVID-19 outbreaks in several
parts of Asia are adding to uncertainties on the pace of
domestic demand recovery, despite strong export performance,
especially in northeast Asia."
Stocks in Taipei .TWII reversed early losses to rise 0.6%,
trying to recover after a 4% tumble on Wednesday that was
sparked by warnings that Taiwan could face tighter restrictions
that would shut non-essential businesses.
The warning from authorities came after a rare rise in
domestic COVID-19 infections that has unnerved the island, which
has so far successfully curbed the spead of infections and never
gone into complete lockdown. On Thursday, Taiwanese cities tightened restrictions on
access to public venues like gyms and libraries, but the
government did not announce any sweeping curbs.
Across the last 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.
Equities in Thailand .SETI fell nearly 1%, as India's
COVID-19 resurgence hit oil prices, denting large-cap energy
firms. PTT PTT.BK shed 0.6% while Gulf Energy Development
GULF.BK lost 0.7%.
HIGHLIGHTS
** Thailand's 10-year government bond yields are up 3 basis
points at 1.69% while the 3-year benchmark yield is up 1 basis
points at 0.57%
** Taiwan's large-cap electronics firm Hon Hai Precision
Industry 2317.TW rose 2.5%
** South Korea's benchmark index .KS11 traded 0.5% lower,
but is 9.5% higher YTD
Asia stock indexes and
currencies at 0329 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCK
DAILY YTD % X DAILY S YTD
% % %
Japan JPY= -0.02 -5.86 <.N2 -1.84 0.67
25>
China
S.Korea
Taiwan TWD=TP -0.01 +1.87 <.TW 0.51 8.49
II>
Thailan THB=TH -0.35 -4.37 <.SE -0.85 7.53
d TI>
(Editing by Simon Cameron-Moore)