TOKYO, May 10 (Reuters) - Oil prices rose on Friday,

continuing upwards trend on the signs of improving economy in

China and as negotiations to halt hostilities in the stand-off

between Israel and Hamas yielded no results.

Brent futures rose 37 cents, or 0.4%, to $84.24 a

barrel, while U.S. West Texas Intermediate crude grew 41

cents, or 0.5%, to $79.64 at 0003 GMT.

In the previous session, oil prices edged up to a one-week

high on data of rising crude oil imports in China in April and

as investors saw the cooling U.S. job market as an indication of

possible interest rate cuts.

China's exports and imports returned to growth in April

after contracting in the previous month, signalling an

improvement in demand.

"Ongoing signs of strength in demand in China should see

commodity market remain well supported," ANZ Research said in a

note.

In the U.S., there is considerable uncertainty about where

inflation will head in coming months, San Francisco Federal

Reserve President Mary Daly said on Thursday, while adding she

still has faith that price pressures are continuing to ease.

Daly did not say if she felt the U.S. central bank was

likely or not to cut interest rates this year. Financial markets

expect the U.S. central bank to start its easing cycle in

September.

Israeli forces bombarded areas of Rafah on Thursday,

Palestinian residents said, as Prime Minister Benjamin Netanyahu

dismissed U.S. President Joe Biden's threat to withhold weapons

from Israel if it assaults the southern Gaza city.

A senior Israeli official said late on Thursday that the

latest round of indirect negotiations in Cairo to halt

hostilities in Gaza had ended and Israel would proceed with its

operation in Rafah and other parts of the Gaza Strip as planned.