(RTTNews) - The Japanese stock market was trading lower on Friday after ongoing economic worries pushed U.S. stocks overnight to lows not seen since 2003.

At 7.53 P.M. ET, the benchmark Nikkei 225 Index was losing 45.39 points, or 0.60%, to 7,512.26 and the broader Topix Index of all First Section Issues was down 2.95 points to 748.64.

The Japanese market closed higher for the first time in four sessions on Thursday, with a weakening yen helping auto makers and other exporters. The market was also buoyed by the Bank of Japan’s decision to buy up to 1 trillion yen worth of corporate bonds. The Nikkei 225 Index rose 23.21 points, or 0.3% to 7,557.65 while the Topix index gained 2.33 points or 0.33% to 751.59.

On the economic front, Japan’s index of all overall industrial activity declined in the final three months of 2008. The Ministry of Economy, Trade and Industry reported Friday that the All-Industry Index for the fourth quarter of 2008 was 102.5, compared to the third quarter reading of 106.1. For the full 2008 calendar year, the All Industry Activity index declined to 105.7 from the 2007 reading of 107.4.

In the currency market, the U.S. dollar was trading in the lower 94-yen range on Friday. In early trades, the dollar was quoted in a range of 94.06-94.08 yen, up 0.50 yen from Thursday’s close of 93.56-93.58 yen in Tokyo. The dollar hit a fresh six-week high of 94.47 yen overnight after Japan’s political turmoil and its economic woes pressured its currency lower.

Banking stocks were trading lower in Friday’s trading following the overnight lead from their U.S. counterparts. Mitsubishi UFJ lost 1.37%, Resona Holdings eased 0.63%, Sumitomo Mitsui gave away 1.16% and Mizuho Financial slipped 2.04%. Meanwhile, brokerage Nomura Holdings added 0.23%.

In the tech sector, Advantest declined 1.44% and Kyocera lost 2.83%, while Tokyo Electron added 0.63%. Among machinery stocks, Fanuc slipped 2.66% and Okuma declined 1.30%.

Export-oriented stocks were trading mostly lower, while automakers were trading mixed. Canon added 0.22%, while Sharp lost 1.43%, Sony edged down 0.19% and Komatsu dipped 1.42%. Among automakers, Honda gave away 0.44%, while Nissan advanced 1.03% and Mazda added 0.73%. Toyota remained unchanged.

In the oil sector, Nippon Oil edged down 0.22% and Showa Shell declined 0.86%, while Inpex rose 2.90%. Trading house Mitsubishi Corp. dipped 1.92%. The company said Thursday that it would take a 33.4% stake in Indonesian nickel developer Strant Minerals Indonesia Pte. from French company Eramet SA for 13.5 billion yen. Meanwhile, Mitsui & Co. slipped 1.71% and Itochu added 0.46%.

Among shipping stocks, Mitsui O.S.K. lost 1.54%, Kawasaki Kisen dipped 3.46% and Nippon Yusen declined 1.65%.

The Nikkei business daily reported on Friday that Kirin Holdings Co. has reached a deal with Philippine food maker San Miguel Corp. to take a 43.25% interest in that company’s brewery unit, San Miguel Brewery Inc. The deal is estimated to be worth around 100 billion yen. Kirin’s stock eased 0.85%.

Tire maker Bridgestone shed 6.01%. On Thursday, the company reported a 92% fall in profit for fiscal year 2008 and forecast profit for 2009 to drop a further 71% due to weak tire demand. The company also said it will cut tire production by 21.5% in 2009.

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