(Adds oil, gold settlement prices)
* Kudlow says U.S., China getting close to trade deal
* Stocks on Wall Street hit record highs, MSCI climbs
* Treasury, European government yields gain on trade hopes
* Risk assets gold, Japanese yen decline
By Herbert Lash
NEW YORK, Nov 15 (Reuters) - Crude prices and global equities markets rose on Friday, with the major U.S. indexes setting record highs, on renewed hopes that the United States and China will reach a deal to de-escalate a 16-month trade war that has crimped global growth.
Equity markets from Tokyo to the major bourses in Europe and across the Americas gained on remarks by White House officials.
Economic adviser Larry Kudlow on Thursday cited what he called very constructive talks with Beijing about ending a 16-month trade war during an event at the Council on Foreign Relations in Washington.
"We're getting close," Kudlow said.
Progress was being made on an agreement's details, according to U.S. Commerce Secretary Wilbur Ross, who said the trade talks were set to continue with a telephone call on Friday as both sides seek to hammer out a "phase one" pact.
MSCI's gauge of stocks across the globe gained 0.67%, lifting it to within 1% of an all-time high set in January 2018. Its emerging markets index rose 0.66%.
In Europe, the pan-regional STOXX 600 index rose 0.4% and the FTSEurofirst 300 index of leading shares adding 0.33%.
On Wall Street, stocks rose across the board.
The Dow Jones Industrial Average rose 199.08 points, or 0.72%, to 27,981.04. The S&P 500 gained 20.17 points, or 0.65%, to 3,116.8 and the Nasdaq Composite added 53.18 points, or 0.63%, to 8,532.20.
"The market rally has largely been driven by the positive sentiment around the trade talks, obviously," said Rahul Shah, chief executive of Ideal Asset Management in New York.
The fourth quarter, which tends to be the best period for corporate earnings, will likely be supportive of stocks going forward, but poor macroeconomic data or a political event could trigger a downturn, Shah said.
"Since the market is hitting all-time highs and everybody's comfortable, the risk of an event affecting the market negatively is higher now because the market is an elevated level," he said.
The S&P 500 has gained almost 25% year to date, and the benchmark index is trading at 18 times forward earnings, or higher than a historical norm of about 15.
Nine of the 11 major S&P 500 sectors were higher, with healthcare leading the sectors higher, gaining 2.09%. Johnson & Johnson and Pfizer lifted the sector.
Gold prices and government debt prices fell as investors leaned away from safe-haven assets on fresh hopes the United States and China will de-escalate trade tensions.
U.S. gold futures settled down 0.3% at $1,468.50 per ounce.
The benchmark 10-year U.S. Treasury notes fell 5/32 in price to push yields up to 1.8342%.
Germany's 10-year Bund yield traded at -0.332%.
Oil futures gained nearly 2%.
Brent crude gained $1.02 to settle at $63.30 a barrel, while West Texas Intermediate crude rose 95 cents to settle at $57.72 a barrel.
The Japanese yen and Swiss franc, both beneficiaries of a flight to quality, weakened.
The dollar index fell 0.18%, with the euro up 0.29% to $1.1053. The yen weakened 0.36% versus the greenback at 108.82 per dollar.
Reporting by Herbert Lash Editing by Nick Zieminski