The Nikkei average dipped 0.26 percent to 42,718.47, pressured by a strong yen and some weak economic readings, with factory output falling more than expected last month and retail sales growth coming in below estimates.
The broader Topix index settled 0.47 percent lower at 3,075.18. Automakers led losses, with Honda Motor and Toyota Motor falling 1.3 percent and 1.6 percent, respectively.
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