Japan stocks edge lower, ending winning streak

The Nikkei fell 0.2 percent to 14,219.48, after rising more than 4 percent in the previous four sessions. The Topix index of all the Tokyo Stock Exchange First Section issues rose 0.2 percent to 1,395.87.

"Although investors are expected to chase the market higher in the near future," the market is still not on a firm upward trend, said Seiichiro Iwasawa, chief strategist at Nomura Securities. "It is not rising yet."

The Nikkei will likely ascend gradually, however, helped by a recovery in U.S. stocks, traders said. Also, Japanese companies' forecasts for this fiscal year through March seem too conservative, lifting sentiment on hopes of upward revisions, they said.

Electronics and precision equipment makers fell, with Sony losing 2.1 percent to 5,160 yen and Nikon sliding 1.8 percent to 3,200 yen.

NEC shed 2.4 percent to 538 yen, although it said on Thursday its net profit more than doubled last fiscal year.

Meanwhile, bank shares rose, led by Mizuho Financial Group. The bank's earnings results assured investors that all bad news was out.

Mizuho's shares rose 2.2 percent to 549,000 yen. The bank said group net profit for the last fiscal year was halved to 311.22 billion yen from 620.96 billion yen a year earlier as it was hit by a large subprime loss.

Marine transport stocks extended their gains on higher freight costs based on the Baltic Dry Index. Mitsui O.S.K. Lines gained 4.2 percent to 1,647 yen after Credit Suisse raised its rating on the firm to "outperform" from "neutral." Kawasaki Kisen rose 3.9 percent to 1,237 yen.

In currency trading, the dollar was quoted at 104.67 yen midafternoon in Tokyo, down from 104.76 yen late Thursday in New York. The euro, meanwhile, rose to $1.5486 from $1.5449.