Japanese stocks fell sharply amid renewed concerns about higher energy costs, with the Nikkei Stock Average declining 2.3% to 64904.21. Technology, semiconductor, and airline shares led the broad-based selloff.

SoftBank Group tumbled 5.2%, while chipmaker Kioxia Holdings slipped 3.5% and Japan Airlines dropped 3.3%. The declines reflect investor anxiety over rising input costs and geopolitical uncertainty.

The dollar strengthened to 163.84 yen from 163.07 at Thursday's close, adding pressure on export-heavy equities. Market participants are closely monitoring developments in the Middle East after Brent crude surpassed $100 a barrel for the first time in two months, signaling potential inflationary headwinds.

Analysts suggest the selloff may persist if energy prices remain elevated, though some see buying opportunities in oversold technology names. The Bank of Japan's policy stance will be a key factor in determining the yen's trajectory and equity market direction.