The Nikkei 225 fell 0.2% to close at 39,819 on Friday, while the broader Topix also declined 0.2% to 2,834, erasing early gains from the morning session. The Nikkei pulled back from its highest level in two weeks, reached the previous day, amid choppy trading as investors remained cautious ahead of this weekend’s Upper House election. Uncertainty surrounding trade negotiations with the US also weighed on sentiment ahead of the August deadline, particularly after disappointing June trade data showed a sharp drop in shipments to the US. However, softer inflation figures helped limit the losses, raising hopes that the Bank of Japan will hold interest rates steady at its upcoming policy meeting. Electronic tech stocks led the losses, with Sony Group down 2.1% and Keyence Corp falling 0.7%. Disco Corp was the worst performer, plunging 8.8%, followed by Advantest, which slumped 4.4%. For the week, the Nikkei rose 0.4%, rebounding from a decline in the previous week.