GREENWELL Point's Tim Atherton and his Australian men's baseball team led world number one Japan through six innings before falling late (3-2) at ZOZO Marine Stadium in Chiba on Monday night.
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Australia took the lead in the third inning, of the opening Premier12 super round game, against the world's top ranked baseball nation.
Darryl George doubled on the first pitch of the inning to register the game's first hit and advanced on a ground ball to reach third with two out.
Tim Kennelly singled up the middle to drive home his second run of the tournament and give Australia a 1-nil lead.
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This advantage was doubled an inning later with another two-out RBI, as Aaron Whitefield singled before scoring on a Mitch Nilsson double to right field.
Japan pulled a run back on Seiya Suzuki's solo home run in the bottom of the fourth.
Masataka Yoshida singled to start the seventh, ahead of being replaced by pinch runner Ukyo Shuto - who stole second and third ahead of scoring on a two-out bunt from Sosuke Genda to tie the ballgame.
Japan took the lead on a bases-loaded walk in the eighth.
Kensuke Kondo (double), Suzuki (intentionally walked) and Tetsuto Yamada (walk) all reached with two out to load the bases.
Australian lefty Jon Kennedy then walked Hideto Asamura to score the go-ahead run.
Yasuaki Yamasaki retired Australia in order in the top of the ninth to seal a one-run victory for the super round hosts.
Australia's super round record dropped to 0-2 with its opening round loss to South Korea carrying into the tournament's second stage.
Australia next face unbeaten Mexico.