Japanese shares opened in the red on Monday, brushing off signs of progress in ongoing US-Iran peace negotiations after President Donald Trump issued renewed military threats against Tehran.
The Nikkei 225 slipped 182.9 points to 71,067.15.
Representatives from the US and Iran are meeting in the Swiss resort of Bürgenstock, mediated by Qatari and Pakistani officials.
Reports of negotiators leaving the venue proved unfounded, as discussions remained active, Bloomberg News reported on Monday citing informed sources.