Japan's economy posted a negative growth of an annualized real 1.2 percent in the April-June period, the Cabinet Office said Monday.

It was the first time that the nation's gross domestic product went downward since the October-December quarter of 2004.

The GDP, which was initially reported at a 0.5 percent expansion, actually dropped 0.3 percent from January to March.

The revised report showed that capital investment fell 1.2 percent in real terms. Personal spending, which accounts for over half of the nation's GDP, gained 0.3 percent.

GDP is the total value of goods and services produced domestically. Real GDP data are adjusted for price and seasonal variations.

The discouraging news affected the Tokyo stock market, with the benchmark Nikkei index down over 400 points 15 minutes after opening.