Japan's Nikkei slumps in worst week since Dec 2022 as tech tumbles

The Nikkei dropped 1.96%, or 781 points, to 38,992.08, bringing its loss for the week to 3.41%.

"The biggest factor for the Nikkei's decline is technical," said Kazuo Kamitani, an equities strategist at Nomura Securities.

It was a second straight weekly loss for the benchmark index, as it pulled back from an all-time high of 41,087.75 reached on March 22.

The 25-day moving average turned lower on Friday, meaning "there's the risk that the Nikkei is in for another step down from here," Kamitani said.

"The 25-day moving average has a mysterious gravitational pull, and is very much in focus for the market," he added. "All of next week, stock market moves could be a bit volatile."

Chip sector shares were among the biggest drags on Friday, with dropping 5.6% to shave 217 points from the Nikkei. Advantest erased another 81 points with a 4.85% decline.

Other notable losers included startup investor , which slid 2.77%, and chain operator Fast Retailing, which skidded 2.26%.

Of the Nikkei's 225 components, 159 declined while 62 advanced, with four flat.

The broader Topix lost 1.08%, with a sub-index of growth shares dropping 1.49%, compared with a 0.68% decline for value stocks.

Seasonality also contributed to equity weakness, said Norihiro , senior Japan economist at Oxford Economics.

"It is the very beginning of the new fiscal year, and earnings season is approaching soon," leading investors to adopt a wait-and-see stance, Yamaguchi said.