TOKYO, April 19 (Reuters) - Asian shares and bond yields

sank on Friday while the dollar, yen, oil and gold surged after

reports of a sharp escalation in Middle East hostilities.

MSCI's broadest index of Asia-Pacific shares

dived more than 2% and U.S. stock futures also pointed

1.3% lower following media reports Israeli missiles had hit a

site in Iran.

U.S. long-term Treasury yields dropped as much as 13.5 basis

points to 4.512%. The U.S. dollar index was last up

0.14%, while the yen gained about 0.4% versus the dollar. Both

currencies are considered safe havens.

Gold jumped 1.6% to $2,414.69, heading back toward

last week's all-time high at $2,431.29.

"Market response looks tied to fears that this is an Israeli

reprisal," said Kyle Rodda, an analyst at Capital.com.

"We're just waiting to get more news now as the situation

unfolds."

Oil prices jumped $3 a barrel as the reports heightened

concerns that Middle East supply could be disrupted.

Israeli Prime Minister Benjamin Netanyahu had vowed

retaliation earlier this week following a volley of attacks from

Iran on the weekend.