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.