Japanese stocks extended their decline on Tuesday as elevated global bond yields and renewed oil gains reinforced concerns that energy-driven inflation could prompt tighter monetary policy. The Nikkei 225 fell 0.6% to close at 65,481, while the broader Topix dropped 1.72% to 4,041, after earlier reports showed the indexes down 0.8% and 1.4%, respectively, in early trade. More than half of Topix constituents traded ex-dividend, adding pressure to the market. SoftBank Group, Mitsubishi UFJ, Sumitomo Mitsui, Toyota Motor and Nintendo all declined. Oil prices rose after Iranian officials reportedly questioned the prospect of reaching an agreement before the U.S. midterm elections in November, following President Donald Trump's rejection of Tehran's latest proposal.