Japan's economy contracted in the final three months of 2015, adding to a string of setbacks for the government's economic reform policy.<br />Between October and December, it shrank by 0.4% compared with the previous quarter, official figures show.<br />Expectations for the numbers were for a quarterly contraction of 0.3%.<br />Weaker domestic demand, together with slower investment in housing, contributed to the disappointing numbers.<br />On an annualised basis the economy contracted 1.4% during the period.<br />That compares with expectations for an annualised contraction of 1.2%.<br />The annualised figure is the rate at which the economy would have contracted over a full 12 months had the December quarter been a reflection of the entire year.
