BANGKOK - World stock markets fell Friday as investors stayed on the sidelines ahead of a key U.S. jobs report later in the day. Investors were also registering disappointment with the European Central Bank after it failed to fulfil hopes for a dramatic step to spark economic activity in the recession-mired region. Confusion about which direction the U.S. Federal Reserve might go with its bond-buying stimulus also kept investors edgy.

Asian stock markets fell and the dollar sank further against the yen on Thursday as traders nervously await the release of a crucial US jobs report later in the day. At the end of a torrid week for the greenback that has seen it lose about four percent against the yen, economists said the non-farm payrolls data would determine its near-term direction. The continued weakness of the US unit sent Tokyo stocks down again, with the Nikkei losing 0.21 percent, or 26.49 points, to end at 12,877.53.

Asian markets sank Thursday following a sell-off on Wall Street, where dealers were spooked by disappointing US jobs data. The dollar rose slightly after shedding around one percent against the yen in New York, while expectations that the Federal Reserve will start to pull back on its monetary easing also pushed the US unit up further against its Australian counterpart. Tokyo fell 0.85 percent, or 110.85 points, to 12,904.02, extending an almost four percent decline on Wednesday due to disappointment at Prime Minister Shinzo Abe's latest plan to boost the economy.

The euro-dollar rate was virtually flat in late trade Tuesday ahead of the release of the Federal Reserve's Beige Book economic survey, which could point the direction of US monetary policy. The yen meanwhile fell as Japanese Prime Minister Shinzo Abe reiterated his commitment to stimulus that has already sent the currency falling for months. At 2100 GMT the euro was trading at $1.3079, barely higher from $1.3076 late Monday. Weaker US trade data for April had no real impact on the greenback.