Mumbai, Sept. 29 -- Japanese stocks fell for a second straight session on Tuesday. The Nikkei 225 dropped 0.6% to 65,481, while the broader Topix declined 1.72% to 4,041.

Global bond yields remained elevated as investors worried that higher energy prices could keep inflation strong and lead to tighter monetary policy. Oil prices also moved higher after doubts emerged over the chances of an agreement between the US and Iran before the US midterm elections in November.

Japanese shares also faced added pressure as more than half of Topix stocks traded without their dividend entitlement. Heavy losses were seen across technology, financial and consumer stocks.

SoftBank Group fell 3.4%, Mitsubishi UFJ lost 3.5%, Sumitomo Mitsui dropped 4%, T...