* Investors torn between higher returns and the Fed"s stance - analyst * Malaysia"s ringgit up the most after long weekend * Singapore stocks led lower by banks, real estate firms June 8 (Reuters) - Emerging Asian currencies largely held steady on Tuesday as traders adopted a cautious approach ahead of U.S. inflation data this week for any further clues on the Federal Reserve"s tapering timeline. Stocks markets in the region were a mixed bag, with Kuala Lumpur leading gains with a rise of 0.4%, while Jakarta <.JKSE fell 0.8% on concerns over a spike in COVID-19 cases in some parts of the country. Investors are keeping a close watch on U.S. inflation data due on Thursday, following on from last week"s payrolls report which tempered expectations of any near-term moves by the Fed to tighten policy. "There is some respite for EM assets as taper fears get pushed back," Eugene Leow, a rates strategist at DBS said in a client note. "We reckon investors are still torn between chasing higher returns while keeping an eye on when the Fed"s stance would change. An uncomfortable carry environment is likely ongoing as complacency on low USD rates seep in," he added. The ringgit, resuming trade after a market holiday on Monday, advanced 0.2%, while the Philippine peso and South Korean won dipped. The rupiah, favoured by foreign investors looking at Indonesia"s high-yielding debt, held steady. Central bank data showed foreign exchange reserves fell by $2.4 billion in May amid capital outflows. Indonesian authorities have drafted in more doctors and nurses to two areas on the islands of Java and Madura after hospitals there approached full capacity, raising worries of a potentially broader spike in COVID-19 cases that has hit other Asian countries in recent weeks. Stock markets in South Korea and Taiwan, both of which have seen double-digit gains so far this year as global trade recovers, were little changed. In Singapore, stocks were led lower by real estate and banks. The city-state"s finance minister said new international tax rules should not weaken incentives for businesses to invest and innovate. Singapore, traditionally a low-tax jurisdiction, is home to a number a global multinational firms" regional headquarters. HIGHLIGHTS: ** Indonesian 3-year benchmark yields fell 7.7 basis points to 4.828%​​ ** CapitaLand Integrated Commercial Trust down most in Singapore at 1.4% Asia stock indexes and currencies at 0331 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY % YTD % DAILY % YTD % Japan -0.13 -5.61 -0.11 5.62 China +0.06 +2.12 -0.38 3.25 India +0.00 +0.36 0.00 12.66 Indonesia +0.00 -1.54 -0.82 0.69 Malaysia +0.19 -2.38 0.44 -2.57 Philippines -0.10 +0.65 0.28 -4.99 S.Korea -0.13 -2.52 0.00 13.18 Singapore +0.02 -0.15 -0.45 11.17 Taiwan +0.12 +2.90 0.04 16.00 Thailand -0.06 -3.97 -0.19 11.05 (Reporting by Nikhil Kurian Nainan in Bengaluru Editing by Shri Navaratnam) Our Standards: The Thomson Reuters Trust Principles.