Tokyo  - The Tokyo market reversed its early gains to end Thursday's trading lower as economic worries outweighed optimism created by a weaker yen.

Tokyo players bought mainly export-oriented issues in morning trading as the yen's value dropped. Market sentiment was also boosted by a report the previous day about a government plan to use public funds to buy stocks to try to avoid further declines in share prices.

But investors returned to selling in the afternoon to lock in profits from gains in the morning and on Wednesday on lingering economic worries.

The benchmark Nikkei 225 Stock Average dipped 3.29 points, or 0.04 per cent, to close at 7,457.93.

The broader Topix index of all first section issues was also down 3.09 points, or 0.41 per cent, at 742.53.

On currency markets at midday (0300 GMT), the dollar traded at 97.75-80 yen, up from Wednesday's 5 pm quote of 97.15-18 yen. A weaker yen helps boost overseas earnings of Japanese firms.

The euro traded at 1.2733-38 dollars, down from late Wednesday's quote of 1.2871-74 dollars, and at 124.50-55 yen, down from 125.07-11 yen. (dpa)