(Updates prices to Asian afternoon)

* Oil volatile as Hormuz shipping plans lack detail

* Host of central banks seen warning on inflation, growth

* Nikkei slips, Wall St eyes Nvidia ( NVDA ) conference on AI

* Dollar off highs, still near major chart levels

By Wayne Cole

SYDNEY, March 16 (Reuters) - Asian markets were in a

wary mood on Monday as hostilities in the Gulf kept oil prices

elevated, clouding an inflation outlook that should keep most

central banks on pause at policy meetings this week, and

probably leading one to hike.

In a possible hint of hope, the Wall Street Journal reported the

Trump administration plans to announce as early as this week

that multiple countries have agreed to form a coalition to

escort ships through the Strait of Hormuz.

U.S. President Donald Trump told the Financial Times it

would be very bad for the future of NATO if the U.S.'s allies

did not help.

European Union foreign ministers will discuss on Monday

bolstering a small naval mission in the Middle East, though any

operation in the Strait would be fraught with risk.

Oil markets seemed unconvinced as Brent rose 1.5% to $104.72

a barrel, while U.S. crude gained 0.9% to $99.60.

Interest rate-setters in the U.S., UK, Europe, Japan,

Australia, Canada, Switzerland and Sweden hold their first full

meetings since the start of the war, with energy prices looming

them.

"Central bank forecasts will immediately bias towards higher

inflation and lower growth," said Bruce Kasman, chief economist

at JPMorgan. "Consistent with this view, we have pushed back or

removed action for most central banks that were expected to move

in March and April."

"Developments on the ground highlight the potential for

further price increases and the likelihood that the risk premium

will remain elevated."

Japan's Nikkei dipped 0.3%, while South Korean

stocks added 0.7% after both lost ground last week.

MSCI's broadest index of Asia-Pacific shares outside Japan

edged up 0.4%.

Chinese blue chips eased 0.5% as data showed retail

sales and industrial output for January and February topped

forecasts, while house prices continued to slip.

Top U.S. and Chinese officials are also meeting in Paris to

discuss potential deals in agriculture, critical minerals and

managed trade for Trump and Chinese President Xi Jinping to

consider when the U.S. president visits Beijing.

ALL THE CENTRAL BANKS

For Europe, EUROSTOXX 50 futures, DAX futures

and FTSE futures all added 0.4%.

S&P 500 futures and Nasdaq futures bounced

0.5% in choppy trading. While earnings season is over, concerns

about AI will be front and centre as Nvidia ( NVDA ) hosts its

GTC conference at Silicon Valley this week, where it is expected

to show off the latest advances in chips and AI infrastructure.

The coming energy shock, combined with pressure on fiscal

budgets from higher defence spending, saw double-digit increases

in bond yields globally last week.

Ten-year Treasury yields were at 4.261%,

having climbed 32 basis points since the war began, while

futures have sharply scaled back the scope for future rate cuts.

The Federal Reserve is considered certain to hold on Wednesday

and the chance of an easing by June has come down to just 26%,

from 69% a month ago.

Investor attention will be on the tone of the statement

and press conference, and whether the median "dot plot"

projections from policymakers remove any further easing for this

year.

A cautiously steady outcome is expected at the other central

bank meetings, bar the Reserve Bank of Australia which is seen

likely to raise its cash rate a quarter point to 4.1% as it

battles resurgent inflation at home.

The heightened volatility in markets has tended to benefit

the U.S. dollar as a store of liquidity. The United States is

also a net energy exporter, giving it a relative advantage over

Europe and much of Asia, which are net importers.

The dollar was trading a touch lower early on Monday, partly

in reaction to the report that shipping might be escorted

through the Strait of Hormuz.

The dollar eased to 159.58 yen, just off a

20-month top of 159.75, with investors wary in case a break of

160.00 triggers more warnings of intervention from Japan.

The euro was stuck near a seven-month low at $1.1445

, threatening a breach of major chart support at

$1.1392 that could unleash a retreat towards $1.1065.

In commodity markets, gold was little changed at $5,022 an

ounce, having so far seen scant support as a safe haven

or as a hedge against inflation risks.