Japan's Nikkei 225 share average is set to close the week in negative territory, extending a multi-day decline driven by investor caution over stretched technology valuations.
The benchmark index faced selling pressure on Friday as traders weighed concerns around the sustainability of recent gains in the tech sector.
91% to 4,051.48, highlighting a divergence in market sentiment.
In contrast, the broader Topix index climbed 0.91% to 4,051.48, highlighting a divergence in market sentiment.
While the headline index struggles with valuation headwinds, the wider market showed resilience, suggesting that selling pressure remains concentrated in high-flying technology names rather than spreading across all sectors.
The sell-off marks a continuation of a broader retreat in Asian equity markets, which have been weighed down by eroding investor confidence in artificial intelligence stocks.
This trend reflects a growing wariness among global investors regarding the premium placed on tech valuations, particularly as growth expectations are reassessed.