Japanese stocks are lower in early trade as uncertainty about the Iran conflict and higher borrowing costs continues. Auto, steel and financial stocks are leading declines. Toyota Motor is down 2.6%, Nippon Steel is 3.3% lower and Nomura Holdings is down 2.8%.

The dollar is at 157.45 yen, compared with Y157.63 as of Monday’s Tokyo stock market close. Investors are closely watching developments in the Middle East, oil prices and bond yields. The Nikkei Stock Average is down 0.8% at 65373.77.