TOKYO (Kyodo) -- Tokyo stocks fell Friday as investors moved to avert risks amid escalating tensions in the Middle East after the Israeli military attacked Iranian nuclear and military sites.

The 225-issue Nikkei Stock Average ended down 338.84 points, or 0.89 percent, from Thursday at 37,834.25. The broader Topix index finished 26.50 points, or 0.95 percent, lower at 2,756.47.

On the top-tier Prime Market, decliners were led by marine transportation, textile and apparel, and service issues.

The U.S. dollar briefly sank to the upper 142 yen range in Tokyo on growing speculation about a possible interest rate cut by the Federal Reserve after U.S. inflation-related data came in weaker than expected.

The U.S. currency later rebounded to the upper 143 yen level as the yen and dollar both attracted buying, with investors fleeing to assets that are seen as safe at times of emergency, dealers said.

At 5 p.m., the dollar fetched 143.79-80 yen compared with 143.45-55 yen in New York and 143.87-88 yen in Tokyo at 5 p.m. Thursday.

The euro was quoted at $1.1534-1536 and 165.85-89 yen against $1.1580-1590 and 166.17-27 yen in New York and $1.1525-1527 and 165.82-86 yen in Tokyo late Thursday afternoon.

On the bond market, the yield on the benchmark 10-year Japanese government bond briefly fell to 1.385 percent, its lowest in about a month, as investors shifted away from riskier assets. It ended at 1.400 percent, down 0.055 percentage point from Thursday's close.

The Nikkei stock index briefly lost more than 600 points, as Israel's attack on Iran fueled concern about higher crude oil prices and their impact on Japan's mainstay manufacturing industries, which are reliant on imported oil, brokers said.

Air and land transportation issues were notably sold as surging oil prices raised fears about higher fuel costs. Shares of chemical companies that use crude oil to manufacture products also plunged.

Automakers were also sold after U.S. President Donald Trump said Thursday he may increase his 25 percent tariff on automobiles made outside the United States "in the not-too-distant future" in a bid to attract more investment in American manufacturing.

The market later pared some losses as investors waited for further developments in the Middle East, with the focus on whether the sixth round of negotiations between the United States and Iran over Teheran's nuclear program will be held this weekend.

Investors were also paying attention to what steps the United States would take to resolve the situation, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.