Tokyo:Japanese stocks continued their downward trend on Tuesday as a global bond sell-off and escalating oil prices sparked concerns over inflation and increased borrowing costs. This situation impacted investor sentiment and reduced risk appetite.

According to Qatar News Agency, the Nikkei 225 index dropped 0.60% to close at 65,481.27, while the broader Topix index decreased by 1.72% to 4,041.13. The decline in stocks was exacerbated by rising government bond yields in major markets, which reached multi-year highs, leading investors to reconsider the outlook for interest rates and capital costs. Japanese government bond yields also neared their highest levels in decades, adding further pressure on domestic shares.

Among individual stocks, Nexon experienced the largest decline, plummeting 14.42%. Mitsubishi Motors and Idemitsu Kosan shares also fell, by 4.93% and 4.92% respectively. In contrast, Tokai Carbon led the gainers, increasing by 4.75% to a record closing level. Additionally, Disco advanced 4.19%, and Screen Holdings rose 4.08%.