The Nikkei 225 Index dropped 2.2% to below 36,900 on Friday, sliding toward its lowest levels since September and tracking losses on Wall Street overnight, where technology stocks came under heavy selling pressure.

Trump's shifting tariff policies and escalating global trade tensions also fueled concerns about economic growth, adding to the bearish sentiment.

Additionally, local equities faced pressure from a stronger yen and rising JGB yields. These moves come as the Bank of Japan is widely expected to continue raising interest rates this year.

BOJ Deputy Governor Shinichi Uchida remarked this week that the central bank could further increase rates if its forecasts are met, signaling that the exit from its extensive monetary easing program is just beginning.

Sharp losses were seen across various sectors, including Fujikura (-4.5%), Mitsubishi UFJ (-1.6%), Sony Group (-5.5%), Advantest (-2.5%), and Nintendo (-6.6%).

Source: Trading Economics