The Nikkei average fell 0.72 percent to 36,391.47 to extend losses for a fourth consecutive session and close at a fresh three-week low as data showed Japanese household spending rose less than expected in July.
The broader Topix index dipped 0.89 percent to 2,597.42, with machinery, iron and steel, and electric appliance issues pacing the declines.
Japan's leading index increased in July from a 7-month low in June, preliminary data from the Cabinet Office showed on Friday.
The leading index, which measures future economic activity, rose to 109.5 in July from 109.1 in the previous month.
Similarly, the coincident index rose to 117.1 in July from 114.1 a month ago. The coincident index measures the current economic situation.
The lagging index also strengthened to 107.9 in July from 107.4 in the prior month.
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