* South Korean stocks rebound, Wall St futures ease

* Iran and Israel put attacks on hold, for now

* Bonds on defensive as markets brace for rate hikes

By Wayne Cole

SYDNEY, June 9 (Reuters) - Asian stock markets tried to

stabilise on Tuesday and oil prices came off highs after Israel

and Iran said they would halt attacks on each other for now,

while ever-hopeful investors bought the latest dip in

semiconductor stocks.

Analysts cautioned the bounce was narrowly based with 60%

of the S&P 500 finishing in the red overnight even as the

overall index edged up. Share futures for Wall Street and Europe

were also lower in early trading.

Higher bond yields continued to test stretched equity

valuations, with shipping through the Strait of Hormuz still

badly restricted.

"Inflation remains sticky enough that 46 of 68 global

central banks are overshooting targets, which helps explain why

bond markets are repricing for tighter policy, and why

long-duration assets, private credit, and several EM currencies

are struggling," analysts at BofA said in a note.

"Our Global Breadth Rule shows nearly half of equity markets

already overbought, led by Korea, Taiwan and Finland."

South Korea's share market climbed 3.0%, having

dived more than 8% on Monday after a run of spectacular gains

left valuations stretched and retail investors with extended

margin positions.

Japan's Nikkei inched up 0.3%, after losing 3.9% the

previous session, while MSCI's broadest index of Asia-Pacific

shares outside Japan rose 0.9%.

For Europe, EUROSTOXX 50 futures and DAX futures

both fell 0.6%, while FTSE futures dipped 0.4%.

S&P 500 futures and Nasdaq futures were both

down 0.3%. The next big test for tech will be results from

Oracle on Wednesday.

PRICED FOR RATE HIKES

Apple ( AAPL ) shares failed to get any initial boost from a

long-delayed AI overhaul of Siri, unveiled at its annual

Worldwide Developers Conference.

ChatGPT-maker OpenAI confidentially filed for a U.S. initial

public offering on Monday, joining rival Anthropic in a trillion

dollar rush for equity financing.

Bond markets continued to struggle as the strong May U.S.

payrolls report pushed investors to price in more risk of rate

hikes from the Federal Reserve. Data on U.S. consumer prices due

Wednesday are expected to show surging energy costs kept pushing

headline inflation higher in May.

Futures imply around a 60% chance of a Fed rate rise as soon

as October, and a quarter-point move is almost fully priced for

December.

Two-year Treasury yields stood at 4.158%, having

hit their highest since early 2025 at 4.201% overnight.

Markets are also fully priced for a quarter-point hike to

2.25% from the European Central Bank when it meets on Thursday,

and see the key rate at 2.5% or 2.75% by year-end.

The surprising strength of U.S. employment kept the dollar

underpinned at 160.17 yen, just off an overnight top at

160.395. The next bull target is a 160.725 peak from April,

though investors are wary a break could draw renewed

intervention from Japanese authorities.

The euro was stuck at $1.1527, after hitting a

nine-week low at $1.1500 overnight, while the pound edged

off a three-week trough to $1.3334.

In commodity markets, Brent crude eased 0.2% to

$94.08 a barrel, after pushing as high as $98.00 overnight,

while U.S. crude dipped 0.3% to $91.06 a barrel.

Gold slipped 0.3% to $4,316 an ounce, having touched

a two-month trough at $4,268.39 on Monday.