Japanese equities are showing a volatile pattern as potential bargain-hunting activity coincides with renewed geopolitical strain in the Middle East.

Iran's Foreign Minister, Abbas Araghchi, stated on Sunday that Tehran holds exclusive rights to manage traffic in the Strait of Hormuz under a preliminary peace agreement signed with the United States. This follows several days of military exchanges between the two nations.

The Nikkei 225 index was last down 0.2% at 69,230.58 after fluctuating between minor gains and losses. Among the worst performers on the benchmark were Kioxia, down 3.1%, and Lasertec, which fell 3.3%.