Asian Stocks Close Lower; Nikkei Dips 0.5%

Updated from 12:46 a.m. EST

Asian stocks closed lower Friday over worries that jobs data to be released later in the day in the U.S. will signal the recession in the world's largest economy is deepening.

Japan's Nikkei 225 stock average fell 0.5% to 8,836.80.

Among individual issues, shares of Toyota(TM) fell 2.2%. A report in the Nikkei business daily said the grandson of Toyota's founder will take the helm of Japan's No. 1 automaker in June. Toyota declined to confirm the report, saying nothing has been decided.

Panasonic(PC), one of the world's largest TV makers, fell 1.3% after reports said it will slash its planned investment in factories that make flat-screen TVs as demand for high-end electronics falls globally.

The Hang Seng index in Hong Kong fell 0.03%, while the Kospi index in South Korea declined 1.1% after the country's central bank reduced its key policy rate by half a percentage point to 2.5% The S&P/ASX 200 index in Australia rose 1.1%.

Stocks in Europe were trading slightly lower. The FTSE 100 index in London fell 0.1%, while the DAX in Frankfurt dipped 0.03%.

Premarket futures in the U.S. were indicating a lower opening for stocks on Wall Street Friday.

The Labor Department is scheduled to release its monthly jobs report, a closely watched barometer of the U.S. economy, before the market opens Friday. Jittery investors braced for bleak results after Thursday's ADP National Employment Report which said U.S. private sector employment fell by 693,000 in December, far bigger than the market's estimate of 51,500.

Stocks in New York ended mixed Thursday prompted in part by disappointing retail sales numbers. The Dow Jones Industrial Average ended lower by 27.24 points, or 0.3%, at 8742.46. The S&P 500 edged up 3.08 points, or 0.3%, to 909.73, and the Nasdaq gained 17.95 points, or 1.1%, to 1617.01.

Oil prices recovered, with light, sweet crude for February delivery up 41 cents to $42.11 a barrel in electronic trading on the New York Mercantile Exchange. The contract overnight fell 93 cents to settle at $41.70.