India, Sept. 1 -- The Nikkei 225 came under pressure on Tuesday, falling around 0.6% to trade below the 66,000 mark. Rising oil prices have revived inflation concerns, while expectations of near-term interest rate hikes in Japan added to selling pressure. The decline also followed a weaker overnight lead from Wall Street, where higher US Treasury yields strengthened expectations of another Federal Reserve rate hike. Japanese investors are also increasingly focused on the possibility of a Bank of Japan rate hike in September, particularly as a weaker yen continues to raise import costs.

Technology and AI-linked stocks were among the biggest decliners, with Tokyo Electron, Fujikura and Advantest recording notable losses. Financial stocks a...