Japan's Nikkei index closed at its lowest in more than a month on Friday, tracking sharp declines on Wall Street overnight, as interest rate hikes by major central banks fuelled fears of an economic slowdown.

The Nikkei share average ended 1.87% down at 27,527.12, its lowest finish since Nov. 10. The index extended losses and posted its biggest daily loss since Oct. 11. For the week, the Nikkei shed 1.3%.

The broader Topix fell 1.20% to 1,950.21 and lost 0.5% for the week.

U.S. stock indexes closed sharply lower, with each of the major averages suffering their biggest one-day percentage drop in weeks, as fears intensified that the Federal Reserve's aggressive rate hikes to battle inflation could lead to a recession.

"It is fairly typical that the losses widen towards the end of the session on the weekend," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

"The Nikkei didn't fall well below the 27,500-level, which showed its firmness. And this time of the year, with absence of foreign fund managers for the year-end holiday, the market tend to lose directions amid thin trade."

Uniqlo brand-owner Fast Retailing fell 3.51% and was the biggest drag on the Nikkei, despite announcing a 3-to-1 stock split.

Chip-related Tokyo Electron and Advantest slipped 4.47% and 3.15%, respectively. Technology investor SoftBank Group lost 3.8%.

Bucking the trend, Toshiba rose 2.11% after a report said its preferred bidder, Japan Industrial Partners, is likely to secure financing of about 1.2 trillion yen ($1.46 billion) from banks for the buyout.

Cybozu surged 15.44% after the software developer raised its annual profit forecast.

Of more than 1,800 stocks traded on the Tokyo Stock Exchange's prime market, 80% declined, while 15% advanced and 3% were flat.

($1 = 137.2800 yen) (Reporting by Junko Fujita; Editing by Savio D'Souza and Uttaresh.V)