In the match held at the at the Wunna Theikdi Indoor Stadium Hall B, Shahram Mahmoudi chipped in 17 points, while Hossein Amiri and Hamzeh Zarini added 12 and 11 points respectively.
Kazuki Ochiai was the lone player who scored a double-digit match-high 20 points for Toray Arrows.
Khatam had defeated Kazakhstan’s Atyrau 3-1 on Monday.
“It’s our good chance to play a strong team like Japan. In every match in every tournament we played them, Japan always proved to be strong defensively and it was a very difficult match for us. The other teams from different pools are also strong and challenging,” Khatam Ardakan head coach Abbasali Mirhosseini commented after the match.
The competition is being held in Naypyidaw, Myanmar from 30 July to 6 August.
The tournament will serve as the Asian qualifiers for the 2019 FIVB Volleyball Men's Club World Championship with the champion qualifying for the world championship.