Japanese equities experienced a second consecutive decline on Tuesday. The Nikkei 225 shed 0.6% to reach 65,481, as the more encompassing Topix index retreated 1.72% to 4,041.

Global bond yields held at elevated levels amid investor concerns that persistent energy prices may sustain inflationary pressures and prompt a more restrictive monetary policy stance. Oil prices advanced following indications that a potential agreement between the US and Iran prior to the US midterm elections in November is facing challenges.

Japanese equities encountered downward pressure as over half of Topix constituents traded ex-dividend. Significant declines were observed in technology, financial, and consumer sectors. SoftBank Group decreased by 3.4%, Mitsubishi UFJ Financial Group shed 3.5%, Sumitomo Mitsui Financial Group decreased 4%, Toyota Motor retreated 3.5%, and Nintendo experienced a decline of 1.3%.