Consumer price inflation for February rose an annual 1.3 percent, in line with estimates, while retail sales increased 3.6 percent from the year before, beating expectations for a 3.2 percent rise. However, household spending declined an annual 2.5 percent, well below expectations for a 0.1 percent gain.
Retailers gained, with Takashimaya, Aeon and Fast Retailing all ending 2 percent higher.
Analysts said the reports dampened hopes for stimulus from the Bank of Japan in the near-term.
"I don't the Bank of Japan will be ready to act in April, it's too soon for them to get an idea of the temperature of the economy after the sales tax rise. But as you move a month or two out of that, I do think on balance we will see more quantitative easing," said Emma Lawson, senior currency strategist at National Australia Bank.
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Yahoo Japan ended 6.3 percent lower following an earlier 10 percent slump after announcing it will buy mobile network operator eAccess from Softbank for $3.2 billion.
Shanghai Composite slips 0.2%
Mainland shares reversed early gains to slide for a third straight session as investors looked ahead to next week's manufacturing data. The government is due to release its official purchasing manager's index (PMI) alongside HSBC's final PMI reading on Tuesday.
SAIC Motor, the country's largest auto maker by volume, soared as much as 13 percent after reporting a 19.5 percent rise in net profit for 2013 while Industrial and Commercial Bank of China (ICBC) gained 2 percent despite reporting its weakest rise in profit growth in 7 years.