Japanese stocks declined in early trading as concerns over the Iran war and higher energy costs weighed on sentiment. Construction and retail shares led the losses, with Taisei down 4.9% and Ryohin Keikaku (7453) quoted 2.52% lower, displayed as a 2.4% decline. The Nikkei Stock Average fell 0.6% to 64759.80. The dollar traded at 153.49 yen, compared with Y153.15 at Wednesday's Tokyo market close. Investors were watching Middle East developments and oil prices after Brent crude rose above $100 a barrel for the first time since July.