The Tokyo Stock Exchange's benchmark index ended Friday's session sharply lower, following declines overnight of all three major gauges in New York. A rise in the WTI crude oil futures on the back of growing tensions in the Middle East triggered inflation worries among investors.

The Nikkei 225 ended the week at 38,992. That's down 781 points, or nearly 2 percent, from Thursday. The index dropped almost 1,000 points at one stage.

Market players unloaded shares in a wide range of sectors, including semiconductor-related stocks.

Analysts say the yen's appreciation against the dollar also prompted investors to sell-off automobile- and other export-related issues.

The Nikkei 225 hit an all-time high on March 22, driven by a weaker yen and robust US equity markets. But the benchmark has since been volatile.

Friday's losses brought the index below the 39,000 mark for the first time since March 15.