Japanese equities opened lower on Monday as deadlocked negotiations over the Iran conflict drove oil prices higher and intensified a rout in global bond markets.
The Nikkei 225 dropped 109.4 points, or 0.2%, to start the trading session at 61,299.87.
Brent crude advanced to above $110 per barrel, amid a lack of progress in talks to restore passage through the strategic Strait of Hormuz and following U.S. President Donald Trump's warning that Iran faces a "ticking clock" to reach an agreement.
Meanwhile, the White House announced that Beijing has committed to purchasing at least $17 billion in U.S. agricultural products each year through 2028 after Trump's two-day summit in China.
Monday's Group of Seven meeting coincides with the anticipated swearing-in of Kevin Warsh, Trump's nominee, as the new chair of the U.S. Federal Reserve.