Tokyo stocks end down 2.09%

Tokyo shares have tumbled more than two per cent in a broad sell-off, despite positive Japanese economic growth data and China's decision to cut interest rates.

The Nikkei 225 index at the Tokyo Stock Exchange gave up 2.09 per cent, or 180.46 points, to close on Friday at 8,459.26.

The broader Topix index of all first-section shares lost 1.78 per cent, or 13.01 points, to close at 717.74.

An upward revision in Japan's January-March economic growth - showing a 1.2 per cent rise, from a preliminary 1.0 per cent - failed to inspire investors and was offset by a weaker-than-expected current account surplus for April.

"The (Nikkei) index is unsteady with lack of supportive catalysts to invite buying," said Kazuhiro Takahashi, head of investment strategy and research at Daiwa Securities.

"Investors are still not sure which direction to take next, with some apprehension for the forthcoming Greek election," he told Dow Jones Newswires.

There are growing fears about Greece's exit from the eurozone after fresh polls later this month, while Fitch on Thursday cut Spain's sovereign credit rating, adding to worries about the eurozone's fiscal crisis.

US stocks closed mixed after China lowered interest rates to spur a slowing economy, while US Federal Reserve Chairman Ben Bernanke dashed hopes of further easing, giving a fairly upbeat assessment of the world's biggest economy.

The Dow Jones Industrial Average gained 0.37 per cent to finish at 12,460.96, while the S&P 500 was flat, down 0.01 per cent, and the Nasdaq Composite fell 0.48 per cent.

In Tokyo trade on Friday, struggling Renesas Electronics soared 18.79 per cent to 316 yen after the Mainichi daily said it would shelve a plan to issue 100 billion yen ($A1.32 billion) in new shares to its biggest investors - Hitachi, NEC and Mitsubishi Electric.

Fast Retailing, the operator of the Uniqlo cheap chic clothing chain, fell 4.86 per cent to 15,250 yen.

The euro fetched $1.2519 and 99.33 yen in Tokyo afternoon trade, down from $1.2561 and 100.01 yen late Thursday in New York.

The dollar bought 79.33 yen against 79.58 yen in New York.

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