Sydney FC are bottom of their Asian Champions League group after going down to a 1-0 defeat away to Kawasaki Frontale.
The J.League hosts didn't score until seven minutes from time but dominated the Sky Blues, having 20 shots to their opponents' two.
Sydney FC's hopes of qualifying from Group H took a big hit against the team that had lost their opening match.
They went into the game at the Todoroki Athletics Stadium without midfielder Josh Brillante, who looks set to leave the club and move to South Korean outfit Pohang Steelers.
Coach Steve Corica left the 25-year-old out of the side as he said he "wasn't in the right frame of mind" to play due to the transfer interest in him.
The Sky Blues had an early chance when skipper Alex Brosque saw his header saved by keeper Jung Sung-ryong.
Leandro Damiao fired wide soon after for Kawasaki, before bringing a fingertip save from Andrew Redmayne midway through the half.
Kawasaki kept the keeper busy after the break and he had to make two superb stops to keep the scores blank.
First a looped volley from Hidemasa Morita from outside the area brought a full-stretch save from Redmayne, then 15 minutes from time he kept out a point-blank effort from Ao Tanaka.
Finally Kawasaki broke the deadlock when Manabu Saito swept home a deflected cross.
It leaves Corica's side bottom with just one point from their opening two fixtures in the tournament.
The coach said: "I thought we defended quite well. Kawasaki had quite a few chances but shots from distance, which our goalkeeper made quite good saves at times.
"We had a very good chance early on in the game, which maybe if we scored this goal the game would have been different ... then we are in front and we can defend a lead.
"I'm pleased, our boys worked very hard. Disappointed not to get at least one point, but I thought Kawasaki were good. They're a good team, we knew this, they played good football."
Sydney FC are 11/4 to win the Grand Final.
The Sky Blues are 19/20 to win their next game against Melbourne City, who are 3/1 with the draw 5/2.
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