Japanese shares closed lower on Friday, weighed by concerns over rising inflation after a Reuters poll showed Japan's core consumer prices likely edged up in March on higher energy costs linked to the Middle East conflict.
The Nikkei 225 fell 1.8%, or 1,042.44 points, to close at 58,475.90.
Japan's core CPI is seen rising 1.8% in March from a year earlier, up from 1.6% but below the Bank of Japan's 2% target for a second straight month, a Reuters poll showed.
Higher oil prices tied to Middle East tensions and a weak yen are expected to keep inflation pressure intact, though utility relief measures may offset some gains.
Japan imports about 95% of its oil from the Middle East. Bank of Japan Governor Kazuo Ueda signalled no urgency to raise rates, suggesting policy may stay unchanged until at least June.
On the corporate front, CCI Group (TYO:7381) fell 2% after its unit Hokkoku Bank booked 6.56 billion yen in unrealized losses on held-to-maturity securities.
Nifco (TYO:7988) rose 1% after saying it will record about 7.64 billion yen in dividend income from subsidiary Nifco Korea. Marubeni (TYO:8002) declined 3% after its unit SmartestEnergy acquired an 85% stake in Factor Energia for 204 million euros.