Australia have suffered their first defeat of the FIBA World Cup qualifying rounds after falling to hosts Japan 79-78.
With a sell-out crowd at Chiba Port Arena cheering on the national team, known as the Akatsuki Five, Japan withstood a late charge from the Boomers to earn their first victory of the qualifying campaign.
The Boomers trailed for the majority of the match but forward Nick Kay closed the gap to one point with 56 seconds remaining but missed two chances in the final 30 seconds.
Japan then converted twice on the fast break to seal the victory, bringing the Boomers' 15-match winning streak to an end.
NBA centre Thon Maker made an impressive international debut for the Boomers by scoring 13 points and grabbing 12 rebounds while Chris Goulding led the scoring with 22 points, including five-pointers.
The Boomers crushed Japan 83-58 in Adelaide last November but they faced tougher opposition this time around with new additions Nick Fazekas (25 points, 12 rebounds) and Rui Hachimura (24 points) making a major impact.
Japan shot the ball at 64 per cent accuracy in the first quarter, Hachimura leading the way with 13 points, before building a 12-point advantage five minutes before halftime.
A five-point burst from Goulding halted Japan's momentum but the Boomers found themselves behind 42-33 at halftime.
Australia clawed their way back in the third quarter with Maker and Goulding connecting from long range to tie the game.
New Melbourne United signing Mitch McCarron then put the Boomers ahead 52-50 but the home side responded to lead 64-58 heading into the final quarter.
The Boomers play their final opening round qualifying match against the Philippines on Monday night in front of an expected 50,000 crowd at the Philippine Arena in Bulacan.
"It was a tough one for us tonight," Boomers guard Matthew Dellavedova said after the loss.
"We didn't play very well on either end but you have to give Japan a lot of credit.
"They played really well, they knocked down shots and their big fellas played well."
Playing his first match for Australia since the 2016 Rio Olympics, Dellavedova made just 2-of-11 shots for four points but dished out a game-high eight assists.
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