"Industrial production dropping when people expected an increase is a huge negative for Japanese stocks"
- Ayako Sera, a market strategist at Sumitomo Trust & Banking Co.
Japan's industrial output unexpectedly declined in February. Production contracted 1.2 per cent, compared to January, said the Ministry of Economy, Trade and Industry on Friday.
"The improving global economy, mending of supply chains damaged by Thai floods and subsidies for energy efficient cars are likely to support Japanese production in the coming months," said Yuichi Kodama, economist at Meiji Yasuda Life Insurance in Tokyo.
Japanese stocks fell for a third consecutive day.
The Nikkei 225 lost 0.31%, or 31.23 points, to 10,083.56, while the broader Topix erased 0.40%, or 3.39, to 854.35.
"Industrial production dropping when people expected an increase is a huge negative for Japanese stocks, weighing down the market as a whole," said Ayako Sera, a market strategist at Sumitomo Trust & Banking Co.
"The Nikkei is holding above 10,000, acting as a support level."
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