Japanese shares dropped in Friday morning trading following an overnight fall on Wall Street and as export-oriented issues were dragged down by a stronger yen, dpa reported.
The benchmark Nikkei 225 Stock Average lost 145.84 points, or 1.5 per cent, to trade at 9,550.18 while the broader Topix index was down 11.71 points, or 1.36 per cent at 849.56.
Japan's industrial production declined a seasonally adjusted 1.5 per cent in June from the previous month, the Ministry of Economy, Trade and Industry said in a preliminary report before the market opened Friday.
Meanwhile, the nation's jobless rate rose 0.1 percentage points to 5.3 per cent in June, the Ministry of Internal Affairs and Communications said.
Japan's core consumer price index fell 1 per cent in June from a year earlier, making it the 16th consecutive month of year-on-year decline, the ministry said in a separate report.
Falling prices have been a major concern in Japan, suggesting persistent deflationary pressure in the world's second-largest economy.
On currency markets at 9 am (0000 GMT), the dollar traded at 86.76-77 yen, down from Thursday's 5 pm quote of 87.33-34 yen.
The euro traded at 1.3067-3068 dollars, up from 1.3026-3028 dollars Thursday, and at 113.35-39 yen, down from 113.76-80 yen.
A stronger yen makes Japanese exports less competitive and erodes overseas earnings when the revenues are repatriated.