* U.S. inflation data expected later on Thursday, seen +0.4% m/m * China, Indonesia stocks outperform with 0.8% rise June 10 (Reuters) - Asia"s emerging market currencies edged up on Thursday as investors awaited a key U.S. inflation report later that could provide a clearer signal on when the Federal Reserve may begin discussing tapering its monetary stimulus. The Taiwan dollar led gains with a 0.2% rise, while a handful of others including the Indonesian rupiah, one of emerging markets" highest-yielding currencies, gained around 0.1%. Traders all week have adopted a cautious approach when dealing with Asia"s risk-sensitive currencies ahead of the report later on Thursday given the pace of the U.S. economic recovery and vaccination campaign, prompting some to question whether the Fed should begin discussing early tapering as price pressures emerge. Also overnight, U.S. 10-year Treasuries, which have helped prop up the dollar in recent months, fell below 1.5%, and were trading at 1.4789% in Asia. A further drop below 1.47% could take yields to the lowest since March 4. Asia"s emerging stocks markets also largely rose on Thursday, with Chinese and Indonesian equities crossing 0.5%. "Looks like the market has made up its mind about the CPI data release due out later today," said Alvin Tan, head of Asia FX Strategy at RBC Capital Markets. With bond yields falling, analysts said markets may be expecting the Fed to stick with its current line that price pressures are transitory and monetary stimulus will stay in place for some time yet. They also pointed to payrolls data last week that showed hiring did not grow as fast as expected. Alongside the Fed policy meeting next week, the central banks of Indonesia, Taiwan and Japan meet. The week after that is the Philippines" turn. "Today"s CPI numbers could prove scorching," Eugene Leo, a rates strategist at DBS said, pointing to expectations for a 0.4% month-on-month rise. "However, we do not think that this would be sufficient to change the transitory price pressures narrative that the Fed has painted." Helping to boost Indonesian shares were retail sales figures that expanded for the first time in 17 months in April. The benchmark index is up about 2.6% so far this month, while the rupiah has appreciated slightly and bond yields have remained relatively stable. In China, the central bank governor said he expects the country"s annual average inflation to be slower than 2% this year. The bank is trying to cool credit growth to help contain debt risks, but is treading carefully to avoid hurting economic recovery. HIGHLIGHTS: ** Indonesian 10-year benchmark yields fell 9.2 basis points to 6.345%​​ ** In Indonesia, PT Arthavest Tbk and PT Ateliers Mecaniques D"Indonesie Tbk led gains with a 25% rise each ** As Fed taper looms, global central banks eye their own exits from stimulus Asia stock indexes and currencies at 0349 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY % YTD % DAILY % YTD % Japan +0.06 -5.75 0.42 5.61 China +0.02 +2.24 0.82 4.25 India +0.00 +0.12 0.00 11.83 Indonesia +0.11 -1.37 0.84 1.99 Malaysia +0.04 -2.30 0.11 -2.71 Philippines +0.03 +0.80 -0.01 -3.33 S.Korea +0.11 -2.51 0.42 12.39 Singapore +0.02 -0.21 0.51 11.45 Taiwan +0.23 +2.82 0.40 15.62 Thailand +0.10 -3.73 0.43 12.69 (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Christopher Cushing) Our Standards: The Thomson Reuters Trust Principles.