* Treasury yields hit new highs overnight, steady in Asia

* Japan's Nikkei falls 1.6%, Wall St futures flat

* Oil prices still elevated, yen falls below 159 per

dollar

By Stella Qiu

SYDNEY, May 20 (Reuters) - Asian stocks fell for a

fourth straight session on Wednesday as war-driven inflation

fears hammered bonds, while investors awaited earnings from

Nvidia ( NVDA ) to see whether the world's most valuable company might

help markets navigate higher borrowing costs.

The sell-off in global bond markets persisted overnight as

investors ramped up bets that the Federal Reserve may need to

increase interest rates this year. The benchmark 10-year

Treasury yield hit a 16-month high of 4.687% overnight, while

the 30-year yield climbed to 5.198%, levels not seen since

2007.

Oil prices slipped a little on Wednesday, with Brent crude

futures off 0.2%, but stayed above $110 a barrel at

$111.07. The Strait of Hormuz remained effectively closed and

U.S. President Donald Trump said he might need to strike Iran

again a day after he said he was postponing an imminent attack

to allow for more negotiations with Tehran.

In Beijing, Chinese leader Xi Jinping will host his "old friend"

Russian President Vladimir Putin, less than a week after Trump's

high-profile visit.

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

fell 0.7% on Wednesday, while Japan's Nikkei

dropped 1.6%. South Korea's KOSPI was down 2%.

Chinese blue-chips slipped 0.4%, while Hong Kong's Hang

Seng index eased 0.7%.

Europe's pan-region stock futures fell 0.5%. Nasdaq

futures were flat while the S&P 500 futures

slipped 0.1%.

"At this point of time, it remains my base case that we are

seeing a corrective pullback after an absolutely phenomenal

rally," said Tony Sycamore, analyst at IG. "The US yields

obviously are creating some rumbles in the market and now

attracting a lot of attention.

"Nvidia ( NVDA ) could come out and absolutely exceed expectations

... but I don't think so. I think the ability for Nvidia ( NVDA ) to just

absolutely shoot the lights out and shock everybody like it has

done, I don't think that's in its book of tricks anymore."

The chipmaking giant will announce first quarter

earnings after the market close on Wednesday. Expectations, as

always, are sky-high. Revenue is projected to increase by almost

80% to nearly $79 billion, according to the median forecast in

an LSEG survey of analysts.

Treasuries nursed losses in Asia, with the yield on

benchmark U.S. 10-year notes holding steady at

4.6713%, having jumped 21 basis points in the past three

sessions. The 30-year yield was flat at 5.1858%

after a 17 bps jump from last Thursday.

The dollar stood near a six-week high against its major

peers. It was steady at 159.05 yen, having gained for

seven straight sessions that unwound most of the

intervention-driven gains on April 30 when Japanese authorities

stepped into the market to safeguard the yen at the 160 mark.

The euro last bought $1.1594, having touched its

lowest level since April 8 overnight. The British pound

was at $1.3380, not far from the six-week low it touched earlier

this week.

Gold prices slipped 0.4% to $4,463 an ounce, the

lowest since the end of March as the U.S. dollar gained.