TOKYO, Oct 1 (Reuters) - Japan's Nikkei average slipped 0.7 percent on Thursday after U.S. shares dipped the previous day due to a surprise contraction in an index of Midwest business activity.
Before the market opened, the Bank of Japan's tankan business sentiment survey showed that Japanese business confidence improved as expected in the three months to September.
The Nikkei fell 71.82 points to 10,061.41.
The broader Topix fell 0.6 percent to 904.16. (Reporting by Masayuki Kitano)