nerves@ (Updates with US trading; changes byline and dateline, previous LONDON)
* Dollar slides against yen on U.S. political concerns
* Global stocks up slightly, but on track for weekly losses
* M&A livens up European equity trading
* Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh
NEW YORK, March 16 (Reuters) - World stock markets edged up on Friday but were poised for weekly losses while the dollar eased against the yen at the end of a week roiled by investor concerns over turmoil in the U.S. government and whether U.S. tariffs could provoke a trade war.
The MSCI All-Country World stock index, which tracks 47 countries, gained 0.11 percent after three sessions of losses, but was set for a weekly fall of about 0.6 percent.
Market participants have been anxious this week over turmoil in the U.S. government and the spectre of a global trade war, after U.S. President Donald Trump ousted Secretary of State Rex Tillerson, viewed as a free trade proponent, then sought to impose $60 billion of tariffs on Chinese imports.
Headlines on Thursday reinforced those concerns, with the Washington Post reporting Trump was committed to removing H.R. McMaster as national security advisor, and the New York Times saying that U.S. Special Counsel Robert Mueller had subpoenaed documents related to Trump's businesses.
Simmering tensions between Russia and Britain, and fears about creeping far-right influence in Italy's government, contributed to investor worries.
European shares found some support in dealmaking activity, with exchange operator NEX Group jumping nearly 33 percent after a takeover offer from U.S.-based peer CME Group .
The pan-European FTSEurofirst 300 index rose 0.47 percent.
U.S. stocks opened higher on the back of technology and financial stocks, with JPMorgan and Bank of America each up more than 0.85 percent and Adobe Systems rising more than 3 percent after the Photoshop maker topped analysts' profit and revenue estimates.
The Dow Jones Industrial Average rose 74.46 points, or 0.3 percent, to 24,948.12, the S&P 500 gained 10.14 points, or 0.37 percent, to 2,757.47 and the Nasdaq Composite added 19.39 points, or 0.26 percent, to 7,501.13.
Wall Street was nonetheless on track for losses on the week, with the benchmark S&P down more than 1.5 percent in the week through Thursday amid trade war fears, riding a four-session losing streak.
"The key here is whether the main battle ground of the trade war will reach IT digital products," said Hiroshi Watanabe, economist at Sony Financial Holding.
In currency markets, reports of the possible removal of McMaster weighed on the dollar, sending it to a more than one-week low against the safe-haven Japanese yen.
The yen strengthened 0.24 percent versus the greenback to 106.11 per dollar, while sterling was last trading at $1.3893, down 0.31 percent on the day.
The dollar index, which measures the greenback against six other major currencies, rose 0.23 percent, with the euro down 0.33 percent to $1.2263.
Benchmark 10-year U.S. Treasury notes last fell 6/32 in price to yield 2.8445 percent, from 2.824 percent late on Thursday.
The 30-year bond last fell 9/32 in price to yield 3.0746 percent, from 3.061 percent Thursday.
European bond trading was thin after the Eurex trading system was hit by technical issues.
Oil prices were set to fall this week on concerns over rising supply from the United States.
U.S. crude rose 0.07 percent to $61.23 per barrel and Brent was at $65.07, down 0.08 percent on the day.
(Additional reporting by Danilo Masoni in Milan; Editing by Bernadette Baum)