Tokyo: Japan's Nikkei index slid more than 2% in morning trading on Tuesday, as investors reacted to rising oil prices and heightened Middle East tensions. The Nikkei 225 index declined by 1,329.97 points, or 2.29%, to 56,727.27 compared with the previous session's close.

According to Qatar News Agency, the broader Topix index also retreated, falling 87.28 points, or 2.24%, to 3,811.14. In currency markets, the US dollar briefly rose to the mid-157 yen range in Tokyo trading, as investors sought safe-haven assets after the United States and Israel launched strikes on Iran.

On the equities front, all major sectors moved lower, weighed down by growing concerns over inflationary pressures linked to the weak yen and higher oil prices.