GLOBAL MARKETS-Asian stocks drop after Wall Street's tech rally stumbles

* Nikkei, ASX 200, Kospi all open lower
* Falls more muted than 5% Nasdaq plunge, MSCI AxJ -0.6%
* Dollar and bonds trade firmly, U.S. payrolls eyed
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Tom Westbrook and Alwyn Scott
SINGAPORE/NEW YORK, Sept 4 (Reuters) - Asia's stock markets
slipped on Friday, following the steepest Wall Street selloff
since June, while safer bonds and the dollar found support as
investors sought shelter.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 0.6%. Japan's Nikkei .N225 dropped 1.3%
while markets in Sydney .AXJO and Seoul .KS11 fell 2%.
The moves are more muted than the 5% plunge on the
tech-heavy Nasdaq .IXIC overnight, or the S&P 500's 3.5% drop,
which traders said was overdue given recent frothy gains.
But investors are worried the fall might turn into a deeper
rout, with a crucial U.S. payrolls report due later on Friday
seen as possible selling trigger if it disappoints.
After-hours trade in U.S. tech companies pointed to further
pressure and futures dropped, with S&P 500 futures ESc1 down
0.4% early in Asia and Nasdaq 100 futures NQc1 down 1.2%.
"No single factor sparked the sell-off, rather it seemed to
be an accumulation of worries about the rally in the tech
sector, overcrowding and rising valuations," said Kerry
Craig, Global Market Strategist at J.P. Morgan Asset Management.
"However, his is unlikely to be a repeat of the tech wreck
of the late 1990s, given how much the market and sector have
changed," he added.
The tumble was the biggest one-day percentage drop on the
tech-focused Nasdaq 100 .NDX since March, while the broader
Nasdaq, S&P 500 and Dow Jones indexes fell by their most since
June and the darling stocks of recent months were hit hardest.
.N
Apple AAPL.O fell 8%, Tesla TSLA.O 9% and Microsoft
MSFT.O 6%.
Still, the plunge only wound the Nasdaq's level back as far
as where it sat last Tuesday. It is still up 28% for the year so
far and 73% higher than its March trough.
"Now the question is whether the correction has legs or
whether investors are tempted back in," said Rodrigo Catril of
National Australia Bank in Sydney.
More muted selling in Asia also focused on tech names with
the sector leading losers on the Nikkei and chip makers falling
in Korea. SK Hynix 000660.KS dropped 2% and Samsung
005930.KS 1.7%.
The mood drove only modest moves in the currency market,
with the dollar extending its recent bounce a little to put it
on track for its best week since June. FRX/
The risk-sensitive Australian dollar AUD=D3 fell 0.1% to a
one-week low of $0.7251, while the New Zealand dollar NZD=D3
also slipped and the safe-haven yen JPY= steadied. The yen
last stood at 106.21 per dollar.
The euro EUR=EBS has steadied after several days of
selling and held at $1.1850.
Bonds held gains with the yield on benchmark 10-year U.S.
debt at 0.6364%, down from a 2-1/2 month peak of 0.7890% touched
in late August. US/
Oil was under pressure and tracked back toward overnight
lows amid worries about U.S. demand. Brent crude futures LCOc1
dipped 0.5% to $43.83 a barrel while U.S. crude futures CLc1
fell 0.7% to $41.09 a barrel.
Gold XAU= was steady at $1,933.28.

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Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Slump: how every S&P 500 stock fared on Thursday Slump: how
every S&P 500 stock fared on Thursday https://tmsnrt.rs/34LqC0H
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
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