LONDON, May 15 (Reuters) - Global shares tumbled on Friday as investor euphoria over tech stocks gave way to inflation fears, sending bond yields higher and lifting expectations of interest rate hikes this year. 

MSCI's main world stocks index shed 0.35%. Europe's STOXX 600 dropped 1.36% after rising for the previous two sessions. 

Nasdaq futures fell 1.53% and S&P 500 futures slipped 1.09% after Wall Street hit fresh highs on a 4% surge in AI darling Nvidia.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 2.57%.

Japan's Nikkei slid 1.99% after data showed wholesale inflation accelerated to 4.9% in April, the fastest pace in three years, keeping the Bank of Japan on track to raise rates. 

Over the last few days, "it's just been this relentless rally. So I think we're at a point where that rally exhausts itself a little bit," said Tim Graf, managing director and head of macro strategy for EMEA at State Street Markets.

But he added that equities remain supported. 

"I think if anything is enough to create a pullback, it is what's happening in rate markets and the prospect that inflation will remain above target for a lot of these central banks and they'll maybe have to tighten it," he said.

Oil prices climbed as uncertainty over a Middle East peace deal and the reopening of the Strait of Hormuz stayed in focus. Brent crude futures rose 3.47% to $109.39 a barrel, on track for a 7.7% weekly gain.

Attention is also on Beijing where U.S. President Donald Trump wrapped up a state visit. After meeting Chinese President Xi Jinping, Trump said they agreed Iran must not be allowed a nuclear weapon and must reopen the Strait of Hormuz.

"President Trump's China visit is ongoing and offering a welcome break from Iran war angst. But that is what we are going right back to," said Padhraic Garvey, regional head of research, Americas at ING.

"The front and centre issue is delivered inflation, which remains troubling from a Treasury market perspective. We maintain a viewpoint centred in an upside test for yields in the weeks ahead."

YIELDS SPIKE

Rising inflation risks, fuelled by higher oil prices, renewed pressure on global bond markets Friday. 

Yields on the German 10-year bond, the benchmark for the euro zone, were last up around 6 basis points to 3.1065%, while Japanese yields hit record highs.

The yield on U.S. two-year notes US2YT=RR rose 7.5 bps to 4.0666%, and the 10-year yield US10YT=RR climbed 8.5 bps to 4.5438%.

Concerns about inflation also hit demand for U.S. Treasuries, with a run of soft auctions this week underscoring market fragility. 

The dollar was set for a 1.3% weekly gain - the most in two months - supported by the lack of progress in the Gulf. 

The greenback's strength pushed the yen to the weaker side of 158 per dollar and kept traders alert for further intervention from Tokyo.

Sterling fell to a roughly one-month low of $1.3351, having slid 0.9% in the previous session following the resignation of health minister Wes Streeting, deepening Britain's political crisis.