The Nikkei index fell by 0.7%, dragged down by chip-related stocks.

Amid ongoing uncertainty over the Middle East conflict and energy costs, the Japanese stock market fell in early trading. Chip-related stocks led the decline. Lasertec dropped 9.8%, SoftBank Group fell 6.1%, and Screen Holdings decreased by 4.2%. The dollar is trading at 158.49 yen, compared to 157.81 yen at the close of Tokyo's stock market on Thursday. Investors are watching corporate earnings, with Bridgestone set to announce quarterly results later on Friday. The Nikkei index dropped 0.7% to 65,210.13 points.