Japanese stocks closed lower on Monday, extending losses for a third consecutive session as rising tensions in the Middle East kept oil prices high and hurt investor sentiment. The Nikkei 225 fell 0.97% to 60,816, while the broader Topix Index also dropped 0.97% to 3,827.
Markets were pressured after U.S. President Donald Trump warned that Iran was running out of time to reach an agreement with Washington. Reports from Iranian media also suggested negotiations between the two sides remain far apart, adding to concerns over the conflict and its impact on global inflation and energy prices.
Japanese shares also tracked Wall Street lower following Friday's sharp selloff in the U.S., where Treasury yields jumped on expectations that the Federal Reserve could raise interest rates later this year to tackle inflation risks linked to the Iran situation.
Technology stocks led the decline in Tokyo, with Fujikura falling 2.9%, SoftBank Group losing 2.7%, and Advantest slipping 0.8%. In company-specific news, Mizuho Financial plunged nearly 6% after reports said it may consider investing in Rakuten Bank.
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