'We're in disbelief because anyone who watched the game could see that it was not a penalty,' said Australian midfielder Tim Cahil, after his side lost to Italy.
England striker Jermain Defoe missed a late penalty but Tottenham Hotspur's unbeaten run under new coach Juande Ramos remained intact after a 1-1 draw at West Ham United on Sunday.
Yuji Nakazawa blasted in the decisive spot-kick to lift Japan to a 4-3 victory over Australia on penalties and reach the Asian Cup football semi-finals on Saturday.
Coach Marcello Lippi hailed 10-man Italy's determination to beat Australia 1-0 on and said their winning penalty was rightly given.
Francesco Totti scored in the last minute of stoppage time to help a 10-man Italy beat Australia and enter the quarter-finals.
Brazilian-born Francileudo dos Santos scored twice to give the Africans a 2-0 win over Australia in the Confederations Cup.
The England striker struck twice as League Cup holders Liverpool overcame 10-man Blackburn Rovers 4-3.