(Updates prices)

By Kevin Buckland

TOKYO, April 22 (Reuters) - Asian stocks recovered some

losses on Monday and bond yields rose as fears of a wider Middle

East conflict ebbed, with investors gravitating back towards

riskier assets.

Gold and the safe-haven dollar eased back from near their

peaks, and crude oil prices declined as the potential for a

major supply disruption waned.

Iran said on Friday that it had no plan to retaliate

following an apparent Israeli drone attack within its borders,

which in turn followed an unprecedented Iranian missile and

drone attack on Israel days before.

MSCI's broadest index of Asia-Pacific shares

rose 0.83% as of 0514 GMT, retracing some of the 1.8% drop from

Friday, after news of the Israeli strike emerged.

Pan-European STOXX 650 futures added 0.33%, and

FTSE futures advanced 0.8%.

"It seems neither Israel nor Iran want an escalation in the

crisis in the Middle East ... and with a subsequent strike from

either side not looking like it's coming, investor concerns have

eased somewhat," said Kazuo Kamitani, a strategist at Nomura

Securities.

However, Kamitani said expectations of later Federal Reserve

interest rate cuts and concerns about chip sector earnings will

continue to keep investors on their toes.

MSCI's world equities index suffered its

worst week since March 2023 last week, dropping 2.85%. Early on

Monday, it was up just 0.05%.

Around Asia, Hong Kong's Hang Seng jumped 1.94%,

Australia's benchmark gained 0.92% and South Korea's

KOSPI climbed 0.82%.

Japan's Nikkei added 0.56%, underperforming the rest

of the region due to a high concentration of chip sector shares,

which tracked declines in U.S. peers from Friday. Taiwanese

stocks slipped 0.05%.

Mainland Chinese blue chips declined 0.18% in

their first chance to react to new measures announced on Friday

aimed at promoting overseas investment in China's technology

sector.

U.S. stock futures added 0.31%, following a 0.88%

drop for the S&P 500 on Friday.

Bond yields - which climb when prices fall - rose back

toward multi-month highs. The 10-year U.S. Treasury yield

climbed 4 basis points to 4.656%, heading back

toward the five-month peak of 4.696% reached last week on the

view that the Fed would be in no hurry to ease policy amid

robust economic data and sticky inflation.

The dollar index, which measures the currency against

six major peers, eased 0.05% to 106.05. It was also at a

five-month top last week, at 106.51.

Gold slid 0.95% to $2,367.75, retreating from near

the all-time peak of $2,431.29 from last week.

"Failure at $2,400 could hint towards a short-term

correction ... followed by an overdue period of consolidation,"

Saxo strategist Charu Chanana wrote in a client note.

Crude oil fell as traders put the focus back on

fundamentals. With a rise in U.S. stockpiles as the backdrop,

Brent futures fell 67 cents, or 0.77%, to $86.62 a

barrel. The front-month U.S. West Texas Intermediate (WTI) crude

contract for May, which expires on Monday, fell 63 cents,

or 0.76%, to $82.51 a barrel, while the more active June

contract dropped 64 cents to $81.58 a barrel.

"It looks on the face of it like oil's uptrend may be over,

but based on technical levels, until WTI breaks below $80, the

uptrend is still in place," said Nomura's Kamitani.