The Nikkei stock index dropped 2 percent Friday morning as the yen's appreciation against the U.S. dollar hurt export-related issues.
At 10 a.m., the 225-issue Nikkei Stock Average was down 797.50 points, or 2.01 percent, from Thursday at 38,975.64. The broader Topix index was down 34.98 points, or 1.28 percent, at 2,697.02.
The dollar fell to the upper 150 yen zone after Bank of Japan Governor Kazuo Ueda indicated that the central bank is likely to consider another interest rate hike between summer and autumn in an interview with the Asahi Shimbun published Friday.
Technology issues were also sold after declines on Wall Street overnight.
