Japan's Nikkei 225 share average closed marginally lower on Friday, finishing at 65,606.71, down 0.12% for the session.

The benchmark index faced headwinds from declines in artificial intelligence and chip-related stocks, which offset broader gains elsewhere in the market.

The index had fallen as much as 1.57% earlier in trading before recovering some ground.

The weakness in technology heavyweights reflects ongoing investor caution over stretched valuations in the sector, a theme that has weighed on the index throughout the week.

This follows a sharp 0.99% drop on Thursday, when the Nikkei fell to 69,779.01 amid a broad-based retreat in technology shares.

The benchmark is now on track to close the week in negative territory, extending a multi-day decline driven by profit-taking and risk aversion in high-growth names.