GLOBAL MARKETS-Global stocks rally on Ukraine peace hopes, euro extends gains

* Asian stock markets: https://tmsnrt.rs/2zpUAr4 * European stock futures rally 1%, Wall St futures rise * Oil falls a second day, euro extends gains * Nikkei gains 1.4% thanks to weaker yen (Updates prices as of 0600 GMT) By Stella Qiu SYDNEY, Feb 13 (Reuters) - U.S. and European stock futures rallied on Thursday on optimism over prospects of a peace deal between Ukraine and Russia, offsetting a jump in Treasury yields as higher inflation threatens to close the door to any policy easing this year. Trade war jitters persisted as U.S. President Donald Trump said he would impose reciprocal tariffs on Wednesday or Thursday on every country that charges duties on U.S. imports. Gold prices climbed back towards the record reached on Tuesday. The euro EUR=EBS extended an overnight bounce, last up 0.5% in Asia to $1.0433, helped by Trump's phone calls with Russian President Vladimir Putin and Ukraine's Volodymyr Zelenskiy, which raised hopes that the years-long war could be nearing an end. Oil prices fell for a second day, testing some key support levels, while EUROSTOXX 50 futures STXEc1 climbed 1%, pointing to a higher open for European markets. Nasdaq futures NQc1 rose 0.4% and S&P 500 futures ESc1 gained 0.2%. Japan's Nikkei .N225 gained 1.4% thanks to a much weaker yen. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 1.2% to the highest since early December. "There were pretty significant moves like in the euro and European assets. The spectre of war has definitely hung pretty heavy over the region," said Kyle Rodda, a senior analyst at Capital.com. "The optimism is probably somewhat premature." Chinese blue chips .CSI300 were 0.2% higher and Hong Kong's Hang Seng index .HSI extended its bullish run, up 2.5% to another four-month high. Overnight, data showed U.S. consumer prices rose by the most in nearly 1-1/2 years in January. The closely watched core inflation index, which excludes food and energy prices, rose 0.4% in the month, above forecasts for 0.3%. With the Federal Reserve already signalling no rush to cut rates further, investors scaled back expectations of more policy easing from the Federal Reserve this year to just 28 basis points, equivalent to just one cut. Treasury yields jumped on the inflation data, with 10-year yields US10YT=RR up 10 basis points overnight to a three-week top of 4.66%. They were down 3 bps on Thursday at 4.6092%. Analysts at Barclays still expect one rate cut from the Fed this year. "Risks are now skewing toward the Fed delivering no cuts this year, and we are putting somewhat more weight on off-baseline scenarios where rate hikes enter the conversation," they said in a note to client. In the foreign exchange market, the dollar JPY=EBS lost 0.2% to 154.15 yen, having jumped 1.3% overnight. The yen was the biggest loser from higher U.S. yields. In commodities markets, oil prices extended their overnight decline as hopes grew for a peace deal between Russia and Ukraine that would mean the end of sanctions that have disrupted supply flows. U.S. crude CLc1 fell 1% to $70.64 a barrel, after dropping 2.7% overnight and Brent LCOc1 was also 1% lower at $74.43, having dropped 2.4% overnight. Gold XAU= rose 0.5% to $2,918 per ounce, not far from its record high of $2,942.70 hit on Tuesday. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Stella Qiu; Editing by Jacqueline Wong) ((yifan.qiu@thomsonreuters.com)) ((To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: 0#.INDEXA ))