Investors also stayed cautious amid fragile US-Iran ceasefire talks and reports of stalled negotiations, despite President Donald Trump's assurances that discussions are nearing completion. On the domestic side, data showed Japan's real wages rose for the fourth month in a row, fueling expectations that the Bank of Japan could raise interest rates later this month.
Technology stocks led the decline, with Tokyo Electron (-6.6%), Murata Manufacturing (-2.1%), Taiyo Yuden (-1.5%), Fujikura (-1.2%), and Advantest (-5%) among the biggest losers.
Despite Friday's drop, the Nikkei still managed a 0.39% gain for the week, after hitting fresh all-time highs earlier.
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