Japanese stocks closed marginally lower on Tuesday as global bond yields rose to their highest levels, fueled by high oil prices and inflation concerns, reviving hopes of an interest rate hike.

The benchmark Nikkei 225 closed down 96.59 points, or 0.15%, at 66,215.34.

Oil prices extended gains on fresh US-Iran hostilities, deepening the security situation in the Middle East, with Iran making fresh strikes at the US assets in Oman and the UAE.

On the corporate side, Mitsubishi UFJ Financial Group (TYO:8306) began discussions with Morgan Stanley Investment Management and BlackRock on separate collaborations to develop Japan's private credit market, MUFG said in two separate filings with the Tokyo Stock Exchange on Tuesday.

Also, Bridgestone (TYO:5108) completed on Monday the acquisition of about 42.6 million shares, amounting to about 150.0 billion yen, according to a Tokyo bourse filing on Tuesday.