MSCI's broadest index of Asia-Pacific shares outside Japan skidded 1.7 percent in response, with South Korea, the Philippines, Indonesia and Taiwan all down. That was both indexes worst weekly loss in more than six months.
"It's more trade worries than anything else because these companies, they either sell a lot to China or produce a lot in China", said Matt Maley, equity strategist at Miller Tabak + Co.
"A simple dynamic is playing out in the global economy right now - the U.S.is booming, while most of the rest of the world slows or even stagnates", said HSBC economist Kevin Logan.
The 30-year Treasury bond reached a four-year high of 3.424 percent, up 7 basis points from late Thursday.
The yield on the benchmark 10-year note hit a high of 3.232 percent following data released the previous day that was seen as increasing the odds a payrolls report due on Friday would also be stronger than expected. The Russell 2000 index was unchanged at 1,646.
Tied in with the rise in borrowing costs has been the latest spike in oil prices, as energy costs tend to have an outsized impact on inflation which is what most major central banks focus on when setting interest rates. Tesla did not immediately respond to a request for comment.
Costco Wholesale dropped 5.6 percent as it disclosed that it uncovered a "material weakness" in its controls on financial reporting.
Early in the session, the Dow Jones Industrial Average index shed 108 points to 26,719, held back by Procter & Gamble, an interest-rate sensitive stock, as well as Nike, Home Depot, Cisco Systems and Visa. Stocks began the day higher after the employment data added to confidence in the strength of the American economy.
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In the UK, FTSE 100 is trading lower, down 75 points at 7,434, while the German DAX lost almost 30 points and the French CAC 40 shed around 54 at 5,437. Intel lost 1.1 percent to $47.63 and Netflix lost 2.78 percent to $353.62.
Even the Nikkei eased 0.3 percent, as rising yields offset the boost to exporters from a weaker yen.
Italian bond yields had initially bucked this trend and fallen after the government moderated contentious spending plans, but this changed as the session wore on as a report suggested the European Union was poised to reject Rome's budget plans. The Japanese yen strengthened 0.55 percent versus the greenback at 113.92 per dollar.
Brent crude futures gained 0.5 per cent to $85.03 barrel, and USA crude rose 0.7 per cent to $74.88 barrel.
"As I have been saying, two consecutive closes above 3.25 percent on the benchmark 30-year Treasury means that my statement in July 2016 that we were seeing the low - I said italicized, underlined and in boldface - is now, looking at the charts, thoroughly corroborated", he said. It's down 0.9 percent in the week.
Gold futures increased 0.5 percent to $1,207.60 an ounce. Heating oil dipped 0.3 percent to $2.39 a gallon. Copper fell 0.5 percent to $2.76 a pound.
A money changer counts US dollar banknotes at a currency exchange office in Izmir, Turkey August 16, 2018. The euro rose to $1.1525 from $1.1515.