GLOBAL MARKETS-Bond yields pause near recent peak, stocks steady ahead of Nvidia results

* Treasury yields steady near new highs hit overnight

* Nvidia (NVDA) results after bell; Samsung workers set to strike

* Oil prices still elevated; yen hovers around 159 per dollar

* Softer British inflation sends gilt yields lower (Updates with early European trading)

By Alun John and Stella Qiu

LONDON/SYDNEY, May 20 (Reuters) - Stock markets paused on Wednesday as bond yields steadied just below multi-year highs amid war-driven inflation fears, though yields remain high enough to cloud the outlook for Nvidia's (NVDA) results due later in the day.

The benchmark 10-year U.S. Treasury yield hit a 16-month high of 4.687% overnight, while the 30-year yield climbed to 5.198%, levels last seen in 2007. Both have since eased slightly to 4.65% and 5.17% respectively.

Longer-dated bonds have also sold off in Europe and Japan, pushing yields close to multi-year highs as investors brace for higher energy prices - driven by the effective closure of the Strait of Hormuz - to feed into broader inflation and force central banks to raise interest rates.

Yields edged lower on Wednesday. Germany's 10-year yield, the euro zone benchmark, fell 2 basis points to 3.17%, down from Tuesday's 15-year high, offering some support to European shares, up 0.2%.

Earlier, MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5%, down for a fourth straight session, while U.S. stocks also slid overnight. Futures pointed to modest U.S. gains later in the day.

Mohit Kumar, chief European economist at Jefferies, said they had advised clients to avoid longer-dated bonds "as the current oil price shock leads to higher inflation and higher deficits."

"Even if we stay in this 'No War No Peace' scenario for an extended period, it would have a negative impact on oil prices and inflation. We should also see government support for fuel subsidies and an increase in unemployment benefits as the oil shock reduces economic activity."

"Higher rates should also start feeding into risky assets," he said, using a term that typically refers to stocks and other asset classes such as corporate credit.

There were tentative signs of easing pressure from the Gulf on Wednesday, as two Chinese oil tankers exited the Strait of Hormuz, shipping data showed, following positive comments from the U.S. president and his deputy.

Brent futures fell 2%. Hopes that more ships could pass through the key strait, however, have been dashed before.

In Beijing, less than a week after U.S. President Donald Trump's high-profile visit, Chinese leader Xi Jinping held talks with Russian President Vladimir Putin, saying it was imperative to stop the war in the Middle East.

BIG DAY FOR CHIPMAKERS

It is a pivotal day for chipmakers, with Nvidia (NVDA) due to report first-quarter earnings after the close. Expectations remain high, with revenue forecast to jump nearly 80% to about $79 billion, according to the median estimate in an LSEG survey of analysts.

The global backdrop is also more complex. A Samsung Electronics (SSNLF) union said it would go ahead with an 18-day strike from Thursday, threatening semiconductor supply.

Samsung shares fell as much as 4.4% before closing broadly flat. They remain up 130% this year, one of the standout performers in a massive rally in global chip stocks that has supported wider equity markets.

"At this point of time, it remains my base case that we are seeing a corrective pullback after an absolutely phenomenal rally," said IG analyst Tony Sycamore. "The U.S. yields obviously are creating some rumbles in the market and now attracting a lot of attention.

"Nvidia (NVDA) could come out and absolutely exceed expectations ... but I don't think so. I think the ability for Nvidia (NVDA) to just absolutely shoot the lights out and shock everybody like it has done, I don't think that's in its book of tricks anymore."

In currency markets, the dollar hovered near a six-week high against a basket of major peers. It was steady at 150.02 yen, $1.1592 per euro and $1.3387 to the pound.

Sterling barely reacted to cooler-than-expected British inflation data, though traders pared back bets on imminent Bank of England rate hikes, sending two-year gilt yields down 10 basis points.

Spot gold was steady at $4,487 per ounce, around a six-week low. (Reporting by Stella Qiu. Editing by Kate Mayberry and Mark Potter)