Japanese equities declined at Friday's opening bell as investors weighed a retreat in artificial-intelligence shares alongside cautious optimism over a potential diplomatic resolution to Middle Eastern hostilities.
The Nikkei 225 opened 355.7 points or 0.5% lower at 67,115.00, pressured by a pullback in semiconductor stocks on Wall Street after Broadcom's AI chip sales guidance fell short of market expectations.
On the geopolitical front, US President Donald Trump claimed that ceasefire negotiations are in their "final" stages, though Iran's foreign minister had earlier described the talks as stalled, according to media reports.
The conflicting signals follow Wednesday's escalation in which Iran launched missiles and drones at Kuwait and Bahrain, killing one person and wounding dozens at Kuwait's main airport, after the US struck an oil tanker bound for Iran.