Mumbai, Sept. 2 -- The Nikkei 225 fell 2.85% to 64,325 on Wednesday, reaching a four-week low as rising global bond yields and oil prices put pressure on Japanese stocks.

Oil prices rose for a third straight session as tensions between the US and Iran increased concerns about inflation and energy supplies. Higher inflation fears pushed bond yields higher, with Japan's 10-year government bond yield reaching 3% for the first time since 1996.

Expectations of a Bank of Japan rate hike also weighed on sentiment. Governor Kazuo Ueda said policymakers need to pay closer attention to rising price risks, strengthening expectations of a possible rate increase later this month.

Technology and AI-related stocks led the decline. Advantest fell 2.5%...