Asian stocks slipped at the open Friday after choppy trading on Wall Street, weighed down by concerns over stretched artificial intelligence valuations and signs of a cooling labor market.

The MSCI Asia Pacific Index fell 0.2%, led by losses in Japan. Gauges in South Korea and Australia also edged lower. The S&P 500 fell 1.1% and the Nasdaq 100 dipped 1.9% Thursday as the indexes dropped for the second time in three sessions. High-flying AI stocks from Nvidia Corp. to Palantir Technologies Inc. declined. A closely watched volatility gauge briefly topped 20.

Treasuries edged lower in early Asian trading with a chorus of Federal Reserve officials warning about lingering inflation impeding possible rate cuts. 10-year Treasury yields had their biggest drop in a month in the previous session

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