* U.S. stock futures up 0.6 pct, bond futures fall
* Trade war truce seen as positive for risk sentiment
* Oil up after Venezuelan election
By Hideyuki Sano
TOKYO, May 21 (Reuters) - U.S. stock futures jumped on Monday as U.S. Treasury Secretary Steven Mnuchin said the U.S. trade war with China is "on hold" after the world's two largest economic powers agreed to drop their tariff threats while they work on a wider trade agreement.
S&P mini futures rose 0.6 percent in early Asian trade on Monday while U.S. 10-year Treasuries futures price fell 4.5/32, or 0.12 percent.
Mnuchin and U.S. President Donald Trump's top economic adviser, Larry Kudlow, said the agreement reached by Chinese and American negotiators on Saturday set up a framework for addressing trade imbalances in the future.
"The weekend talk appears to have made progress. While they still need to work out details of a wider trade deal, it is positive for markets that they struck a truce," said Koji Kabeya, chief global strategist at Daiwa Securities.
The positive mood is likely to spill over to Asian shares, which have been capped by trade war worries since Trump proposed tariffs on steel and aluminium products earlier this year.
U.S. bond yields are likely to gain as safe-haven demand for bonds falls, with the 10-year Treasuries yield seen testing its seven-year high of 3.128 percent hit on Friday.
In the currency market, higher U.S. yields helped to strengthen the dollar against a wide range of currencies.
The euro traded at $1.1760, hovering above Friday's five-month low of $1.1750.
The dollar maintained an uptrend to fetch 110.89 yen , after hitting a four-month high of 111.085.
Oil prices held firm near 3 1/2-year highs after Venezuelan leader Nicolas Maduro appeared to be set for re-election, an outcome that could trigger additional sanctions from the United States and more censure from the European Union and Latin America.
Oil prices have been supported by plummeting Venezuelan production, in addition to a solid global demand and supply concerns stemming from tensions in the Middle East.
U.S. crude futures rose 0.6 percent to $71.69 per barrel, near last week's 3 1/2-year high of $72.30 while Brent crude futures notched up 0.6 percent to $78.95 per barrel. It had risen to $80.50 last week, its highest since November 2014.
Reporting by Hideyuki Sano Editing by Eric Meijer