Japanese shares ended lower on Friday on tariff fears and geopolitical tensions as the Bank of Japan held rates steady.

The Nikkei 225 fell 0.2%, or 74.82 points, to end at 37,677.06.

The Bank of Japan held rates steady on Wednesday despite signs of further tightening from wages and inflation. Markets expect a 25 bps hike by year-end, but Governor Kazuo Ueda warned that US tariff fallout could affect timing.

Inflation eased in February, with headline CPI slowing to 3.7% from January's two-year high of 4%, helped by resumed electricity and gas subsidies.

Core CPI rose 3% year-on-year, down from 3.2% in January. Electricity and gas price increases slowed to 9% and 3.4%, while food prices, excluding perishables, climbed 5.6%, up from 5.1%. Rent edged up 0.2%.

Odakyu Electric Railway (TYO:9007) reported a 1.8% rise in February passenger numbers, with revenue up 1.3% to nearly 3.3 billion yen. Department store sales fell 0.6%, while Shinjuku hotel occupancy rose 4.3 points to 91.7%.

Japan Airlines (TYO:9201) cut its full-year revenue forecast to 1.84 trillion yen, down 4.7%, but left profit and dividend targets unchanged.

Next Generation Technology Group (TYO:319A) revised its 2024 results, raising total assets to 15.4 billion yen from 14.7 billion yen and net assets to 4 billion yen from 3.11 billion yen.