Japanese equities slipped on Monday to close in the red following a rise in crude prices amid renewed US airstrikes on Iran and Tehran's claims to have closed the Strait of Hormuz.
The benchmark Nikkei 225 closed down 1,315.00 points, or 1.92%, at 67,242.73.
Fears of a rise in oil prices and higher inflation triggered bets on Federal Reserve interest-rate hikes, leading to a sell-off in equities and government bonds.
Investors reassessed the economic impact amid escalating geopolitical tensions and slower economic growth expectations.
On the corporate side, Premium Group (TYO:7199) finalized terms for its first domestic public bond offering totaling 6.5 billion yen for institutional investors, while also planning a 2 billion yen retail-focused bond, according to a Tokyo bourse filing on Monday.
Also, SoftBank (TYO:9434) and Yaskawa Electric (TYO:6506) teamed up with NVIDIA to demonstrate a flexible object-handling system developed by Yaskawa Electric using SoftBank's AI Data Center GPU Cloud as a development platform for physical AI.