Japanese stocks ended slightly lower and government bond yields dropped across maturities as data showed Japan's core inflation rate fell to 3.3 percent in June after hitting a 29-month high. Investors also braced for the closely watched election this weekend.

The Nikkei average dipped 0.21 percent to 39,819.11 while the broader Topix index settled 0.19 percent lower at 2,834.48.

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