* Nikkei rises, Nasdaq futures flat

* Oil firm amid confusion over Gulf peace talks

* Market pares US rate risk as CPI test looms

By Wayne Cole

SYDNEY, Aug 10 (Reuters) - Asian share markets tracked Wall

Street higher on Monday after a soft U.S. jobs report pared the

risk of a near-term rise in borrowing costs, though a lack of

progress in Gulf peace talks saw oil prices creep higher.

Iran said on Sunday that a deal with Oman defining new

shipping lanes in the Strait of Hormuz was in its final stages

but reiterated that the waterway would only reopen once the

United States met other conditions.

Brent crude added 0.9% to $84.32 a barrel as

shipping through the vital waterway remained at a trickle, while

U.S. crude rose 0.7% to $78.74 a barrel.

The latest revival in fuel costs raises the stakes for the

U.S. July consumer price report due on Wednesday where analysts

look for a rise of 0.1% in the headline and 0.2% for the core.

Any upside surprise could rekindle speculation of a hike

from the Federal Reserve next month.

"Our forecast for core CPI of 0.22% is probably not quite

firm enough to prompt a hike from the Fed at the September

meeting, though repeated prints closer to 0.3% could do it,"

said Michael Feroli, chief U.S. economist at JPMorgan.

"One thing we are watching for is any rebound in core goods

prices after a two-month stretch in which they fell."

The futures market has scaled back the chance of a

September move to around 44%, from 67% a week ago.

The pullback in rate risk helped Treasuries rally on Friday

and saw Wall Street close at record highs. Japan's Nikkei

followed that lead and rose 0.6% on Monday, while South

Korea added 0.5%.

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

edged up 0.3%.

DOUBLE-DIGIT EARNINGS GROWTH

For Europe, EUROSTOXX 50 futures and DAX futures

both dipped 0.1%, while FTSE futures fell 0.4%.

S&P 500 futures dipped 0.1%, while Nasdaq futures

were little changed having climbed 5% last week amid a

slew of upbeat earnings reports.

Analysts at BofA noted that with nearly 90% of S&P 500

results in, earnings per share were up 30% on the year after

excluding investment gains at Alphabet and Amazon. A 76% EPS

beat rate matched the strongest level since 2021.

"AI remains the stand out, with median EPS growth of 28%

versus 12% for non-AI related stocks, though consensus expects

AI to slow to 16% next quarter," they said in a note.

Earnings are lighter this week but include semiconductor

company Applied Materials ( AMAT ), networking equipment maker

Cisco ( CSCO ) and cloud infrastructure technology company

CoreWeave ( CRWV ).

In bond markets, yields on 10-year Treasuries

were a shade higher at 4.673% with the market bracing for $125

billion in new issuance this week.

The drop in yields and general improvement in risk had

pulled the U.S. dollar broadly lower, with the euro just off a

seven-week top at $1.1557.

The dollar was flat on the yen at 157.85, with

investors still wary of intervention should they push the yen

down too far.

In commodity markets, the drop in yields helped

non-interest-paying gold hold at $4,342 an ounce, having

climbed more than 7% last week.