* Thailand kickstarts vaccination drive * U.S. payrolls data below expectations * China May export growth misses expectations June 7 (Reuters) - Taiwan shares fell on Monday as the country extended COVID-19 restrictions for another two weeks, while Asia"s emerging currency markets largely held steady as investors await key U.S. inflation data later this week. South Korea"s won and India"s rupee, however, outperformed the region"s currencies that traded flat to slightly higher after U.S. payrolls on Friday missed expectations and eased worries over early tapering of policy support from the Federal Reserve. Attention now turns to a U.S. inflation report on Thursday for further signals. "A higher-than-expected U.S. CPI could add to the pattern of building price pressures amid the recovery and put the spotlight back on tapering talks," Barclays said in a note, forecasting a 4.8% year-on-year rise in the consumer price index (CPI) and a 0.41% month-on-month rise in May. It added that "more robust indications of a tapering discussion by the Fed imply risks of a dollar bounce." Taiwan stocks recovered some ground from a sharp 2.1% fall early in the session, closing 0.4% lower, after the island extended COVID-19 restrictions until June 28 to battle a surge in infections. However, the equity market has rallied more than 10% from May lows after the initial bout of infections prompted curbs as officials looked to ease concerns that the export-focused economy will be hit. Thailand, another country hit hard by the pandemic, kick-started its long-awaited mass vaccination drive on Monday and is prepping plans to reopen to vaccinated foreign visitors in what could be a big boost to an economy reliant on tourism. Stocks climbed 0.6% while the baht gained 0.3% In China, the yuan and blue-chip stocks dipped after export growth slowed more than expected in May. "The pandemic-induced surge in demand for Chinese exports appears to be losing momentum and should reverse as global consumption patterns normalise on the back of vaccine rollouts and easing restrictions," Capital Economics Senior China Economist Julian Evans-Pritchard said. Markets in Malaysia were closed for a public holiday. HIGHLIGHTS: ** Taiwan to quarantine workers to control COVID spike at tech firm ** Thailand"s 10-year government bond yields down 2.5 basis points to 1.745%​​ ** China"s three-child policy unlikely to boost birthrate - Moody"s​​ Asia stock indexes and currencies at 0630 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY % YTD % DAILY % YTD % Japan +0.02 -5.69 0.27 5.74 China -0.11 +1.97 0.10 3.53 India +0.30 +0.39 0.39 12.51 Indonesia +0.15 -1.60 0.00 1.44 Malaysia - -2.57 - -3.00 Philippines +0.03 +0.72 -0.48 -5.26 S.Korea +0.32 -2.40 0.37 13.18 Singapore -0.03 -0.25 0.78 11.66 Taiwan +0.08 +2.83 -0.37 15.96 Thailand +0.26 -3.88 0.61 11.86 (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Simon Cameron-Moore and Ramakrishnan M.) Our Standards: The Thomson Reuters Trust Principles.