Japanese stocks struggled to build on last Friday's rally, opening slightly lower amid renewed Middle East tensions, though they briefly recovered within the next half hour of trading.
The Nikkei 225 slipped marginally by 147 points to 68,410.63 at the open on Monday.
Japanese equities closed up 1.2% higher on Friday after Minister Satsuki Katayama urged domestic pension funds and households to invest more at home.
She described the $1.8 trillion Government Pension Investment Fund as a target of the new policy push, according to various media reports.
Elsewhere, fresh U.S. strikes on Iran and conflicting claims over the Strait of Hormuz added to Middle East uncertainty.