The benchmark Nikkei 225 index lost 0.60 percent, or 141.53 points to 23,344.58 in early trade, while the broader Topix index was down 0.32 percent, or 5.97 points, at 1,864.47.
"Tokyo is seen trading in negative territory with a lack of impulses to boost the broader market," SBI Securities said in a statement.
Some dealers are taking to the sidelines ahead of the US jobs data due later Friday, analysts said.
The dollar traded at 109.41 yen in early Asian trade, slightly up from 109.39 yen in New York.
On Thursday, the yield on the 10-year US Treasury hit at 2.789 percent, its highest level since April 2014.
The high yield weighed on global markets as it stirred fears the US economy may slow down and that flows of cash may shift from stocks to the higher yielding bonds.
Wall Street stocks finished mostly lower Thursday with the broad-based S&P 500 dipping 0.1 percent while the tech-rich Nasdaq Composite Index falling 0.4 percent.
The Dow Jones Industrial Average inched up 0.1 percent however, to reach 26,186.71.
In Tokyo, ANA dropped 3.79 percent to 4,356 yen after the airline maintained its full-year profit forecasts despite record turnover.
Toyota was down 0.61 percent at 7,571 yen while rival Honda was up 0.36 percent at 3,873 yen ahead of its nine-month earnings report due later Friday.
Sony was up 1.11 percent at 5,445 yen ahead of its earnings report, also due after the Friday market close.