SYDNEY - Asian shares slipped on Friday as investors hunkered down for the all-important US payrolls report, while Tesla suffered huge losses on the very public feud between US President Donald Trump and billionaire Elon Musk.

A run of soft economic data this week has markets wary of a downside surprise in the monthly payrolls print due later in the day, which would add to fears of stagflation while piling pressure on the Federal Reserve to ease policy in a hurry.

Tesla shares bounced 0.8 percent in after-hours trading after tumbling a whopping 14 percent overnight to wipe off $150 billion in market value. That came after Trump threatened to cut off government contracts to Elon Musk's companies as the once close relationship turned into a bitter open disagreement.

There were signs that tempers may be cooling a bit, with Trump telling Politico that "it's okay" when asked about the relationship and that White House aides had scheduled a call on Friday with Musk to broker a peace.

Nasdaq futures rose 0.3 percent and S&P 500 futures gained 0.4 percent, while the losses in European stock futures narrowed, with EUROSTOXX 50 futures down just 0.1 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2 percent on Friday away from its eight-month peak. It is still set for a weekly rise of 2.1 percent.

A call between presidents of the US and China has offered little clarity to ease ongoing trade tensions.

"I think the fact that they are talking, the fact that there is a willingness to find a way through and the channels of communication are open is a positive," said Luke Yeaman, chief economist at the Commonwealth Bank of Australia.

"But I think it's clear that there are still a lot of tensions in the relationship and that neither side wants to give too much away… There's not a lot of goodwill to work with to fundamentally improve the trade relationship."

Most Asian shares are down slightly, but Japan's Nikkei is a rare bright spot in Asia, up 0.4 percent, helping trim its weekly drop to 0.7 percent.

Wait for payrolls

Weaker-than-expected labor market data, including a 47 percent year-on-year jump in Challenger layoffs and a significant downside surprise in ADP's private payrolls, have dampened expectations for the payrolls report.

Forecasts are centred on a rise of 130,000 jobs in May, with the unemployment rate holding steady at 4.2 percent.

Any unexpected weakness could bring the next US rate cut forward and trigger a huge rally in Treasuries. Futures imply scant chances of a rate cut until September, which is about 93 percent priced in, with another move likely to come in December.

Yields on the benchmark ten-year Treasuries were flat at 4.3887 percent, having risen 3 basis points overnight to bounce away from a one-month low.

"We expect payrolls to lose additional momentum in May, printing a below-consensus 110,000," said analysts at TD Securities in a note to clients.

"Markets have recently been singularly focused on tariffs and deficits, with macro taking a back seat in recent weeks. Our forecast may not be sufficient to catalyze this revamped focus on macro, but we expect downside surprises to generate a larger market reaction."

The dollar was 0.2 percent higher against its major peers on Friday just a touch above a six-week low as soft economic data dent the US currency.

The euro hit a six-week top of $1.1495 overnight after the European Central Bank cut rates but signaled that it was nearing the end of its year-long policy easing cycle. Investors have given up on a move in July, with the final move most likely to come in October or December.

In commodities markets, oil prices were slightly lower but were headed for weekly gains on supply concerns. US crude futures slipped 0.4 percent to $63.12 a barrel but were up 3.8 percent for the week.

In precious metals, gold prices climbed 0.4 percent to $3,366.78 an ounce. For the week, they are up 2.3 percent.