Japan’s Nikkei 225 stock index started the week sharply lower, reflecting inflation worries as renewed attacks in the Middle East drove up oil prices.
The Tokyo benchmark lost 1.9 percent on Monday to end at 67,242, falling for the first time in three trading days. Investors unloaded retail and high-tech shares.
Crude oil futures in New York rose above 74 dollars a barrel overnight.
This followed reports that the US and Iran exchanged attacks over the issue of the Strait of Hormuz. Analysts say investors sold shares in Tokyo because higher oil prices could accelerate the pace of inflation.
