* MSCI Asia-Pacific index down 0.03 pct, Nikkei up 0.25 pct

* Lingering trade woes continue to curb risk appetite

* Dollar index reaches 2-week peak amid trade tensions

* Crude oil prices dip slightly after previous day's rally

By Shinichi Saoshiro

TOKYO, Aug 3 (Reuters) - Asian stocks were steady on Friday, with gains from the tech-led rise on Wall Street capped by the latest exchange of trade threats between Beijing and Washington, while safehaven flows lifted the dollar to a two-week high.

Investors also remain cautious ahead of the July U.S. jobs report due later on Friday, which will give a reading on the health of the world's largest economy and possible clues about the pace of Federal Reserve interest rate rises.

MSCI's broadest index of Asia-Pacific shares outside Japan inched down 0.03 percent. The index was down about 0.6 percent for the week, during which it slumped to a two-week high on Thursday on U.S.-China trade tensions.

The trade war between the world's top two economies intensified midweek after U.S. President Donald Trump raised pressure on China by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports.

"The equity markets now have time to regroup and settle down after yesterday's slide. But the U.S.-China trade conflict involves the epicentre of the region and this will continue to weigh psychologically on Asian equities," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo.

Japan's Nikkei added 0.25 percent and South Korea's KOSPI edged up 0.32 percent, drawing some support from overnight gains by U.S. stocks.

Technology stocks pushed the S&P 500 and Nasdaq higher on Thursday, driven by Apple shares as the iPhone maker became the first publicly traded U.S. company worth a trillion dollars.

In foreign exchange, the dollar index against a basket of six major currencies extended its overnight gains and rose to a two-week high of 95.209.

Trade tensions were seen driving demand for the U.S. currency, with a slide by the pound providing an extra lift.

Sterling dropped more than 0.8 percent on Thursday despite the Bank of England lifting interest rates, after Governor Mark Carney said monetary policy needed to "walk not run" and expressed concern about the risks of a cliff-edge Brexit.

The euro was flat at $1.1586 following a loss of 0.6 percent the previous day.

Bubbling concerns over Italy weighed on the euro, with the country's bond yields rising to two-month highs following media reports of a government meeting on the budget revived market concerns about tensions within the ruling coalition.