Tokyo stocks lost more than 2 per cent Wednesday on the nation's weak gross domestic product data and overnight falls in the US market, the dpa reported.
The Nikkei 225 Stock Average plunged 297.02 points, or 2.23 per cent, to 13,006.58.
The broader Topix index of all first-section issues also fell 26.46 points, or 2.08 per cent, at 1,244.96.
The Japanese government reported Wednesday that the nation's economy showed the first fall in four quarters.
Japan's gross domestic product (GDP) in the April-June quarter shrank 0.6 per cent from the previous quarter.
On an annualized basis, the GDP fell 2.4 per cent in real terms in the April-June period, the government reports said.
On currency markets at 9 am (0000 GMT), the dollar was quoted at 109.25-30 yen, down from Tuesday's 5 pm quote of 109.88-91 yen.
The euro was quoted at 1.4896-4901 dollars, down from Tuesday's 5 pm quote of 1.4906-09 dollars, and at 162.70-75 yen, down from 163.82-86 yen.