* Equity markets turn risk-off on renewed US-Iran

hostilities

* Oil edges back from recent peaks on Israel-Lebanon

ceasefire

* Yen rises from intervention zone; bitcoin hits

four-month low

(Updates prices to Asian midday)

By Gregor Stuart Hunter

SINGAPORE, June 4 (Reuters) - Asian stocks fell on

Thursday as renewed fighting between the U.S. and Iran rattled

investors, although oil slipped from recent highs after Israel

and Lebanon agreed to a ceasefire.

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

was down 1.5%, while S&P 500 e-mini futures

slipped 0.5%. Korean shares reopened as much as 2.6%

lower after a holiday, while Japan's Nikkei 225 slumped

1.9%.

"Financial markets shifted back into a risk-off mode as the

U.S. and Iran exchanged fire again," analysts from Westpac wrote

in a research report.

Stocks on Wall Street dropped overnight, with the S&P 500

falling 0.7% and oil prices rising around 2% as talks between

Tehran and Washington showed little progress and hostilities

erupted anew.

Traders looked through better-than-expected U.S. ISM services

sector PMI data, which rose in May as businesses preemptively

placed orders and rebuilt inventories in anticipation of

shortages and higher prices because of the Iran war.

Brent crude futures were 1.3% lower at $96.59 a barrel

as trading resumed on Thursday after Lebanon and Israel agreed

to implement a ceasefire, which is contingent on a complete

cessation of fire from the Iran-aligned Hezbollah militia and

the evacuation of all its operatives from the South Litani

Sector. The two sides had agreed last month to a ceasefire but

hostilities had continued.

The Republican-led U.S. House of Representatives approved a war

powers resolution on Wednesday to block President Donald Trump

from continuing the conflict against Iran. The measure is

largely symbolic as it must still pass the Senate and would need

a two-thirds majority in both chambers to override an almost

certain presidential veto.

Broadcom shares plunged more than 13% in extended trading after

missing Wall Street expectations for second-quarter revenue on

Wednesday, while its top executive left a previous 2027 sales

forecast unchanged in a rare sign that the AI chipmaker may be

losing steam.

In currency markets, the yen strengthened 0.1% to

159.88 per dollar, opening a little distance for the 160 level

seen by traders as a trigger for intervention.

Bank of Japan Governor Kazuo Ueda said on Wednesday the central

bank must discuss the pros and cons of raising interest rates if

inflationary risks outweigh downside risks to the economy, in

remarks that signalled a strong chance of a rate hike this

month.

The Aussie dollar nudged 0.1% higher after data showed

Australia's trade balance swung back into surplus in April after

a surprise deficit the previous month, as a rebound in resource

exports helped offset a surge in fuel imports.

The U.S. dollar index, which measures the greenback's

strength against a basket of six currencies, held steady at

99.44 after a three-day rally which took the currency to its

strongest level since April 7.

The yield on the U.S. 10-year Treasury bond was down 1.4 basis

points at 4.473%.

Gold rose 0.9% at $4,473.61per ounce, staying firmly

within the trading channel it has sat in since the middle of

last month.

Bitcoin tumbled 4% to a four-month low of $62,321.87,

while ether was down 1.9% at $1,744.70.

Bitcoin has dropped as much as 17% in five straight days of

declines, "undercut by a toxic combination of a stronger U.S.

dollar and rising yields, alongside a shift toward more cautious

risk sentiment," IG analyst Tony Sycamore wrote in a client

note.