TOKYO (Kyodo) -- The Nikkei stock index ended down 3 percent Friday after briefly falling nearly 2,000 points in a setback from the previous day's sharp rebound, on selling fueled by fears of an intensifying trade conflict between the United States and China.

The 225-issue Nikkei Stock Average ended down 1,023.42 points, or 2.96 percent, from Thursday at 33,585.58, as exporters were sold due to the yen's sharp appreciation to a six-month high. The broader Topix index finished 72.49 points, or 2.85 percent, lower at 2,466.91.

All industry sectors lost ground on the top-tier Prime Market, with decliners led by pharmaceutical, insurance and bank issues.

The U.S. dollar briefly weakened by more than 1.5 yen to 142.62 in Tokyo, as the Japanese currency, seen as a safe-haven asset, was sought on concerns over a U.S. economic slowdown, dealers said.

"The market is currently digesting such concerns as deterioration in the U.S. economy and business performance," said Masafumi Yamamoto, chief currency strategist at Mizuho Securities Co. "The dollar may decline further if such concerns materialize."

At 5 p.m., the dollar fetched 142.83-85 yen compared with 144.38-48 yen in New York and 146.26-28 yen in Tokyo at 5 p.m. Thursday.

The euro was quoted at $1.1363-1365 and 162.30-34 yen against $1.1194-1204 and 161.89-99 yen in New York and $1.1026-1028 and 161.27-31 yen in Tokyo late Thursday afternoon.

The yield on the benchmark 10-year Japanese government bond ended at 1.345 percent, down 0.025 percentage point from Thursday's close, as the debt, also seen as a safe-haven asset, was bought amid concerns that the tariff fight between the world's two biggest economies would lead to a global economic recession.

Stocks tracked steep overnight losses on Wall Street on heightened worries about the global economy after the United States said Chinese goods now face a minimum tariff rate of 145 percent following retaliation by Beijing.

Although the Nikkei rallied the previous day with its second-largest point gain in history, the market was still susceptible to downward pressure due to U.S. President Donald Trump's aggressive tariff policies, brokers said.

"Fears of the Trump administration shaking the global economy remained in place," said Kazuo Kamitani, strategist at Nomura Securities Co.'s Investment Content Department.

Stocks ended the day after erasing some losses, partially reflecting investor hopes for economic supporting measures in China to ease the adverse impact of U.S. tariffs, brokers said.

Financial markets have been disturbed by the U.S. tariff policy, especially after Trump last week announced his so-called "reciprocal tariffs" involving many countries. On Wednesday, he decided to pause the measure for 90 days.

This week, the Nikkei index registered historic point gains and a drop, briefly approaching the 30,000 threshold.

"It was a surprising week with President Trump's tariff policy, given its immeasurable impact on the global economy," Kamitani said.