The Nikkei 225 Index fell 0.4% to around 37,600 while the broader Topix Index lost 0.1% to 2,736 on Friday, with Japanese shares sliding for the third straight session, weighed down by weaker-than-expected economic data and a soft lead from Wall Street.
Investor sentiment soured after Japan’s GDP contracted by 0.2% quarter-on-quarter in Q1, marking the country’s first economic shrinkage in a year and coming in below forecasts for a 0.1% decline.
The data reinforced concerns raised earlier this week by the Bank of Japan, which warned of potential economic moderation amid the impact of US trade policies.
Japanese markets also tracked overnight weakness in US tech shares, which were hit by profit-taking.
Domestic technology stocks led the decline, with Disco and Advantest each losing 1.6%, while Tokyo Electron dropped 2.1%.
Heavyweights Sony Group and Toyota Motor also fell, shedding 2.3% and 1.7%, respectively.
AloJapan.com