The Nikkei 225 Index fell 0.2% to below 65,900 on Monday, extending losses from the previous session as investors remained cautious about elevated global bond yields and persistent Middle East tensions. Yields stayed near multi-year highs after the US Treasury’s surprise bond buyback announcement last week failed to ease concerns about inflation and rising government debt. The US was expected to announce new sanctions on Iran later Monday, while Iranian leaders said the measures would not weaken Tehran. Investors also focused on Nvidia’s upcoming earnings and guidance for clues about whether the AI-driven rally in equities can continue. Technology and AI-linked stocks were among the main decliners: Kioxia Holdings fell 0.6%, Advantest dropped 1.1%, Fujikura slid 3.1%, SoftBank Group declined 1.4% and Furukawa Electric lost 1.7%.