Mumbai, Aug. 18 -- Japan's stock market came under pressure on Tuesday, with the Nikkei 225 falling 2.54% to close at 67,461. The decline reversed the previous session's gains as rising global bond yields and inflation worries weighed on investor sentiment.

Japan's 10-year government bond yield climbed to around 2.95%, its highest level in three decades. Concerns over higher government spending and the growing possibility of a near-term Bank of Japan rate hike added to the pressure.

Investors were also worried about the government's plan to cut the consumption tax on food to 1% for two years. With no clear alternative source of revenue yet identified, the move has raised concerns about Japan's fiscal position.

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