The Nikkei 225 dropped 0.6% to below 40,900 on Friday, giving back gains from the previous session as renewed trade tensions weighed on sentiment.
Investor concerns mounted after US President Donald Trump reaffirmed a 10% global tariff and imposed reciprocal levies of up to 41% on countries lacking trade deals, raising fears of supply chain disruptions and slower global growth.
Japanese equities also tracked losses in US futures, with Amazon plunging in after-hours trading on disappointing guidance.
Meanwhile, the Bank of Japan left interest rates unchanged on Thursday but raised its inflation forecast for the current fiscal year.
In corporate news, Tokyo Electron sank 18% after cutting its full-year profit outlook amid sluggish demand from logic chipmakers.
Other tech stocks also retreated, including Lasertec (-5.6%), Hitachi (-8.9%), Disco (-2.7%), Advantest (-2.6%), and SoftBank Group (-2.5%).
AloJapan.com