Japanese shares suffered early losses to finish lower today following the release of disappointing December machinery orders data and fears that the US may be in recession.
A technical glitch on the Tokyo Stock Exchange also affected trading throughout the afternoon session.
The Tokyo Stock Exchange suspended futures trading on Topix, the broader index, due to the system trouble throughout the day.
The blue-chip Nikkei 225 stock index was down 189.91 points or 1.4 per cent at 13,017.24, off a low of 12,997.88. It lost 3.6 per cent over the week.
The broader Topix was up 6.67 points or 0.5 per cent at 1,287.14, off a low of 1,285.38. It fell 3.7 per cent from the week before.
Some investors stayed on the sidelines ahead of a long weekend in Japan. Japanese financial markets will be closed on Monday for a public holiday.
With financial markets still shaky in the aftermath of the subprime crisis, local investors are keen to see what measures will be proposed in tomorrow's G7 meeting of finance ministers and central bankers in Tokyo.