Tokyo stocks fell 0.46 percent Friday morning after talks on reforming Greece's bailout again ended in deadlock, just days before the cutoff for the country to repay a debt, raising fears it could default.
The Nikkei 225 index at the Tokyo Stock Exchange eased 94.99 points to 20,676.41 by the break while the Topix index of all first-section issues was down 0.61 percent, or 10.15 points, at 1,660.76.
"Negotiations over Greece have been pushed back into the weekend, so we'll have a wait-and-see mood," Hitoshi Asaoka, Tokyo-based senior strategist at Mizuho Trust & Banking, told Bloomberg News.
Greece's emergency negotiations with its creditors ended abruptly Thursday, pushing the crisis toward a critical weekend meeting in a bid to avoid a default by Athens and its potential exit from the eurozone.
The euro slipped to $1.1182 and 137.85 yen Friday from $1.1206 and 138.53 yen in New York.
The dollar eased to 123.23 yen from 123.62 yen, weighing on exporters.
Reactions was muted to a raft of Japanese economic data Friday that confirmed tepid inflation. Sony fell 0.65 percent to 3,854.5 yen and Toyota dropped 0.63 percent to 8,285 yen.
Financials were also lower with Nomura Holdings falling 0.72 percent to 829.8 yen.