* Wall Street stocks end higher; Nasdaq up more than 1%

* US imposes new 50% tariffs on $20 billion worth of

Canadian products

* Yen weakens against dollar, breaches 163 mark

(Updates with closing US market levels)

By Caroline Valetkevitch and Ankur Banerjee

NEW YORK/SINGAPORE, July 21 (Reuters) - Major stock indexes

rose on Tuesday with the Nasdaq and chipmaker shares surging,

while oil prices climbed to a five-week high amid rising

tensions in the Iran conflict.

The Japanese yen weakened 0.41% against the greenback to

163.14 per dollar, breaching the 163 mark for the first time

since December 1986 as traders braced for possible intervention

in the currency by the Japanese government.

Two oil tankers carrying Saudi crude to Asia reversed course in

the Red Sea after threats from Yemen's Iran-aligned Houthis.

Brent futures rose $1.79, or 2.0%, to settle at $91.01 a

barrel, while U.S. West Texas Intermediate crude gained

$1.68, or 2.0%, to settle at $84.91. It was the highest close

for Brent since June 10 and for WTI since June 11.

"Investors are not necessarily thinking the war is going to

end anytime soon," said Bruce Zaro, managing director at Granite

Wealth Management in Plymouth, Massachusetts, but he said the

conflict's impact on oil prices may be seen as overdone.

Investors are also focused on corporate earnings this week, with

results from Intel ( INTC ), Alphabet and others still

due. Market watchers are interested in whether the AI trade has

more room to run, given sky-high profit expectations for the

second quarter.

"We had a tremendous move up in Q2 in the stock market, and now

investors are looking at earnings to see if they justify the

move up," said Adam Sarhan, chief executive of 50 Park

Investments in New York.

Tech stocks, and in particular semiconductor shares, have

consolidated and now are bouncing off support, he noted.

An index of semiconductors ended 5.2% higher. The index

ended Friday more than 20% below its late-June record closing

high.

The Dow Jones Industrial Average rose 385.38 points, or

0.74%, to 52,224.64, the S&P 500 rose 65.92 points, or

0.89%, to 7,509.20 and the Nasdaq Composite rose 329.13

points, or 1.29%, to 25,837.21.

European stocks rose, with technology and mining shares

gaining. The pan-European STOXX 600 index was up 0.56%.

MSCI's gauge of stocks across the globe rose

11.58 points, or 1.05%, to 1,117.08.

Benchmark 10-year U.S. Treasury yields reached a two-month high

as traders added to bets that the Federal Reserve will hike

interest rates this year.

The yield on benchmark U.S. 10-year notes rose 3.41

basis points to 4.632% and reached 4.640%, the highest since May

20.

The Fed held interest rates steady at its June meeting, but

policymakers signaled they expect to raise borrowing costs later

this year amid growing concern that inflation remains lodged

above the central bank's 2% target.

Trade was also in the spotlight. The Canadian dollar

weakened 0.27% versus the greenback to C$1.411 per dollar, after

U.S. President Donald Trump on Monday unveiled plans for 50%

tariffs on a range of imports from Canada in retaliation for

what he described as discriminatory treatment of American-made

cars, alcohol and dairy goods.

Canadian Prime Minister Mark Carney said Trump agreed to

intensify trade negotiations after speaking on Tuesday, but

warned he would consider all options if the tariffs Trump

threatened on Monday go ahead.

The dollar index, which measures the greenback against a

basket of currencies, rose 0.17% to 101.16, with the euro

down 0.11% at $1.1402. The greenback was on pace for its longest

streak of daily gains since mid-May.