Japan's Nikkei falls as court battle over US tariffs weighs

TOKYO, May 30 (Reuters) - Japan's Nikkei share price average fell on Friday, weighed down by uncertainty surrounding a court battle about U.S. President Donald Trump's tariffs as well as a stronger yen which hurt exporters.

At 0134 GMT, the Nikkei index .N225 was down 1.4% at 37,880.58. It ended the previous trading session at its highest point in over two weeks and is on course for a 1.9% weekly gain.

The broader Topix .TOPX fell 0.85% to 2,788.17 and is set for a rise of 1.9% for the week.

"Japanese shares rose yesterday on expectations that the impact of Trump's tariffs on the global economy would be eased, but that positive mood was erased overnight," said market analyst Shuutarou Yasuda at Tokai Tokyo Intelligence Laboratory.

A federal appeals court temporarily reinstated the most sweeping of Trump's tariffs on Thursday, a day after a trade court ruled that the president had exceeded his authority in imposing the duties and ordered an immediate block on them.

The U.S. dollar fell following the news, pushing the yen as high as 143.45 on Friday.

Strong inflation data on Friday for Japan's capital also helped the yen to strengthen, strategists said.

Automakers fell, with Toyota Motor 7203.T and Honda Motor 7267.T slipping 1.87% and 2% respectively.

A stronger yen typically weighs on exporter shares by reducing the value of overseas earnings when converted back into Japanese currency.

Chip-related shares fell, with Advantest 6857.T and Tokyo Electron 8035.T down 3.7% and 3.5% respectively.

Uniqlo-brand owner and index heavyweight Fast Retailing 9983.T fell 2.35% to drag on the Nikkei the most.

Bucking the trend, drugmakers rose, with Otsuka 4578.T and Eisai 4523.T rising 2.59% and 2.77% respectively to offer the biggest support for the Nikkei.

Of more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 38% rose, 56% fell and 5% were flat.