TOKYO, Feb. 17 (Xinhua) -- Tokyo stocks closed lower Monday as weaker-than-expected Japanese gross domestic product data for the October-December quarter sparked concerns about the future health of the world's third largest economy amid a downbeat mood.

The 225-issue Nikkei Stock Average lost 164.35 points, or 0.69 percent, from Friday to close the day at 23,523.24.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, dropped 15.10 points, or 0.89 percent, to finish at 1,687.77.

Data released by the government before the opening bell Monday showed that the Japanese economy shrank in the October-December quarter, marking its sharpest fall since a 7.4 percent slump in the April to June period of 2014, and the investors were in a risk-off mood from the get-go, market players here said.

The Cabinet Office said that Japan's economy shrank an annualized real 6.3 percent in the October-December quarter.

The contraction in inflation-adjusted gross domestic product for the three-month period equates to a 1.6 percent decrease from the previous quarter, and marked the first contraction in five quarters, largely owing to a consumption tax hike last October from 8 to 10 percent.

The government's figures showed that private consumption, which accounts for roughly 60 percent of the Japanese economy, fell 2.9 percent in the recording period, from the previous three-months, with the consumption tax hike central to the drop in spending.

Brokers here also pointed out that capital expenditure, a key indicator of domestic demand, retreated 3.7 percent in the recording period, in a clear sign that businesses also reigned in spending owing to the tax hike.

They said that investor sentiment was dented by the worse-than-expected results, and concerns are growing that Japan may fall into a technical recession.

The relative strength of the U.S. dollar compared to the yen, however, helped cap the market's downside, analysts here said.

Owing to concerns over domestic consumption, retailers lost ground, with department store operators J. Front Retailing and Isetan Mitsukoshi Holdings losing 2.1 percent and 2.6 percent respectively. Marui Group, meanwhile, closed the day 2.4 percent lower.

Travel and transportation issues also tracked lower, with East Japan Railway dropping 2.4 percent. Among airlines, Japan Airlines dropped 2.3, while ANA Holdings relinquished 2.4 percent by the close.

Kirin Holdings Co Ltd. also closed in negative territory, slumping 7.7 percent, after announcing a worse-than-expected net profit of 59.6 billion yen (543 million U.S. dollars) for the year-ended December, down almost 64 percent from a year earlier.

Bucking the downward trend, Unicharm Corp. closed the day 4.1 percent higher.

By the close of play, air transportation, food and metal product-oriented issues comprised those that declined the most, and issues that fell outpaced those that rose by 1,819 to 294 on the First Section, while 47 ended the day unchanged.

On the main section on Monday, 1.165 billion shares changed hands, dropping from Friday's volume of 1.351 billion shares.

The turnover on the first trading day of the week came to 2,016.5 billion yen (18.35 billion U.S. dollars). Enditem

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