The Nikkei 225 Index dropped 1.2% to below 50,500, while the broader Topix Index fell 1% to 3,365 on Friday, trimming gains from the previous session as investors grew cautious ahead of a key US inflation report that could influence Federal Reserve policy. US stocks stalled overnight after jobs data showed resilience in the US labor market, slightly reducing expectations for a Fed rate cut next week. Rising global bond yields also pressured equities, with the Bank of Japan signaling a potential rate hike later this month. Notable losses came from heavyweight firms including Advantest (-2.5%), Fanuc (-0.9%), Fujikura (-0.3%), Tokyo Electron (-2.3%) and Toyota Motor (-2%). In corporate news, Mitsubishi UFJ announced plans to partner with Morgan Stanley in asset management, building on 17 years of collaboration.