Toyota and profit-taking weighs on Tokyo stocks

And many investors kept to the sidelines ahead of the release of key jobs figures out of the United States (U.S.) that will indicate the strength of recovery in the world's biggest economy.

Troubled car giant Toyota ended down 3.52 percent, a day after dropping almost six percent, after it confirmed it had received dozens of complaints in North America and Japan about brake failure on its top-selling Prius hybrid.

It fell about 14 percent last week.

The latest blow comes after the firm — the world's biggest automaker — issued a recall of almost eight million vehicles because of problems with a faulty accelerator.

The recall amounted to more than its entire 2009 global sales of 7.8 million vehicles.

Problems were compounded by U.S. Transportation Secretary, Ray LaHood, warning Wednesday that safety officials “will continue to hold Toyota's feet to the fire to make sure that they are doing everything they have promised to make their vehicles safe.”

Tokyo lost 0.46 percent, or 48.35 points, to close at 10,355.98.

However, after the market closed Toyota said it had raised its profit outlook for the financial year to March, despite its latest woes.

It also said that it had posted a net profit of US$1.7 billion in the three months to December.

Market players also moved to take profits after two days of rallies across Asia.

Shanghai finished 0.28 percent, or 8.53 points, lower at 2,995.31 due to a sell-off in banks after Beijing said it had no plans to inject cash into three major state-run lenders, dealers said.

China Business News reported on Thursday that Central Huijin Investment, the domestic arm of the country's sovereign wealth fund, was not planning to increase its holdings in major banks.

Earlier media reports had suggested Huijin was planning to increase its stakes in banks including Industrial & Commercial Bank of China, China Construction Bank and Bank of China.

Hong Kong shed 1.84 percent, or 380.44 points, to 20,341.64.

Sydney ended 0.59 percent, or 27.2 points, off at 4,621.6 following weaker than expected retail data.

Asian bourses had little direction from Wall Street, which dipped 0.26 percent as New York traders also booked profits there.

However, some markets were off their earlier lows as investors moved in to pick up cheap shares.

Investors were also anticipating January employment data in the U.S., after the private-sector payrolls firm ADP reported that the economy shed fewer jobs than expected.

ADP's survey said U.S. private sector job losses narrowed to 22,000 in January, better than the consensus forecast of 30,000.

In other markets:

— Seoul ended almost unchanged, with the KOSPI edging up 1.40 points to 1,616.42.

— Singapore closed 0.72 percent, or 19.86 points, lower at 2,744.98.

— Wellington rose 0.44 percent, or 13.83 points, to 3,148.94 despite unemployment rising to 7.3 percent in the fourth quarter from 6.5 percent in the previous three months.

— Jakarta closed 0.43 percent, or 11.32 points, to 2,593.22.

— Kuala Lumpur dipped 0.17 percent, or 2.13 points, to 1,265.03.

— Manila closed 1.04 percent, or 30.06 points, higher at 2,914.87.

— Bangkok closed 0.72 percent, or 5.13 points, lower at 702.52.

— Mumbai closed down 1.64 percent, or 271.1 points, at 16,224.95.

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