Japanese stocks decline; dollar gains

Japanese stocks fell Friday for a fourth straight session, dragged down by exporters on worries that the U.S. economy might be slowing and amid jitters over this past week's global market slide.

The Nikkei 225 stock index lost 235.58, or 1.35 percent, to finish at 17,217.93 points. Over the last four sessions, the index has plunged nearly 1,000 points, or 5.5 percent.

While the selloff in Asian markets was triggered by Tuesday's plunge in Chinese stocks, investors in Japan are mostly focused on the outlook for the U.S. economy, which indicators suggest is weakening.

Auto and electronics companies have taken a hit as the U.S. is Japan's largest export market.

"There is a sense of concern among players over slower growth in the U.S. economy," said Norihiro Fujito, an analyst with Mitsubishi UFJ Securities Co.

Figures released Wednesday showed that the U.S. economy has slowed to a lackluster growth rate of 2.2 percent in the fourth quarter, down significantly from an initial estimate of 3.5 percent.

The weakness reflected steep declines in the once-booming housing industry and in such troubled industries as autos. Also this week, the government reported a big fall in orders to U.S. factories, a drop that raised worries on Wall Street and contributed to a 416-point plunge in the Dow Jones industrial average on Tuesday.

The Tokyo market was also weighted down by a strengthening of the yen against the dollar. A higher yen maker Japanese exports more expensive and less competitive overseas.

The broader Topix index, which includes all shares on the exchange's first section, fell 18.52 points, or 1.06 percent, to 1,721.59.

In currencies, the U.S. dollar was trading at 117.64 yen at 2:50 p.m. Friday, up from 117.58 yen late Thursday in New York. The euro fell to $1.3176, from $1.3198.