EMERGING MARKETS-Asian assets fall ahead of US CPI data, Fed policy meeting

* Indonesian rupiah at lowest level in 4 years * Taiwan stock index gains diminish, close down 0.3% * U.S. CPI data and Fed policy meeting due on Wednesday (Updated at 0642 GMT) By Poonam Behura June 11 (Reuters) - Emerging Asian markets fell on Tuesday ahead of the U.S. inflation data and the Federal Reserve's policy meeting, which will provide further cues on future rate cuts. The Fed is widely expected to hold rates for the seventh consecutive meeting in its upcoming policy decision, due on Wednesday. The U.S. inflation numbers, due before the Fed decision, are expected to have risen by a slim 0.1% in May, but with the core figures up 0.3%. "A much more hawkish adjustment of the dot plot to one cut may see USD strength persist for longer while risk proxies, including Asian FX may come under pressure," OCBC currency strategist Christopher Wong said. However, a shift to two cuts would be of no surprise and the dollar may ease while risk proxies could enjoy a relief rally. In Asia, the market's attention was focused on Indonesia's rupiah, which weakened 0.1% on Tuesday, trading at its lowest level since April 2020. Bank Indonesia's deputy chief said it will use all its monetary instruments to stabilise the rupiah. The central bank on Monday intervened to prevent extreme volatility in one of the region's worst-performing currencies this year. Taiwan's dollar fell as much as 0.5% to 32.411 per U.S. dollar. It was set for its biggest intraday loss in nearly eight weeks. South Korea's won, one of the worst regional performers this year, also dipped 0.2%, while more other regional currencies were mostly trading flat. Earlier in the session, China's yuan fell to a near seven-month low against the U.S. dollar, as investors returned from a long weekend, catching up with the broad strength of the greenback in overseas markets. Asian equities were largely mixed on Tuesday, with risk sentiment dented by the upcoming U.S. policy meeting. Taiwanese stocks hit a record high in early morning trade, but pared back most gains later in the day. The index closed down 0.3% at 21,792.12 points. Stocks in China and Singapore fell 0.5% and 0.4%, respectively, while those in South Korea and India each rose 0.2% and 0.3%. In other emerging markets, the Mexican peso fell nearly 2% to 18.55 per U.S. dollar in international trading as President-elect Claudia Sheinbaum pledged to encourage discussions on proposed constitutional reforms, including a judicial overhaul. HIGHLIGHTS: ** Philippine c.bank wants inflation firmly settled near target midpoint, governor says ** China's home de-stocking push to bring developers little cheer ** BOJ to decide on bond-buying taper this week, economists say Asia stock indexes and currencies at 0642 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY % YTD % DAILY YTD % % Japan -0.17 -10.3 <.N22 0.25 17.56 2 5> China -0.08 -2.15 <.SSE -0.51 2.04 C> India +0.00 -0.35 <.NSE 0.31 7.36 I> Indonesia -0.09 -5.49 <.JKS -0.08 -4.91 E> Malaysia -0.02 -2.75 <.KLS -0.24 10.71 E> Philippines +0.03 -5.59 <.PSI -0.50 -0.37 > S.Korea -0.17 -6.56 <.KS1 0.15 1.88 1> Singapore +0.01 -2.44 <.STI -0.38 2.14 > Taiwan -0.47 -5.15 <.TWI -0.30 21.53 I> Thailand -0.05 -7.02 <.SET 0.00 -6.87 I> (Reporting by Poonam Behura in Bengaluru; Editing by Michael Perry and Sonia Cheema)