Japanese stocks fell on Friday as a global bond sell-off pushed the 10-year US Treasury yield to its highest level since 2002, driving global borrowing costs to multi-decade highs amid concerns that energy supply disruptions could fuel inflation ahead of US jobs data.

The benchmark Nikkei 225 closed down 647.26 points, or 0.94%, at 68,309.46.

Oil prices rose amid reports of a US military buildup in the Middle East, elevating oil supply risks and widening the US-Iran conflict as the US considers renewing strikes on Iran after the midterm elections.

On the corporate side, Daiichi Sankyo (TYO:4568) and U.K.-headquartered global biopharmaceutical company AstraZeneca will collaborate with Summit Therapeutics on a planned Phase III trial to evaluate Datroway in combination with ivonescimab as a first-line treatment for triple-negative breast cancer.

Also, Fitch Ratings has maintained Toyota Motor's (TYO:7203) A+ long-term foreign and local currency issuer default ratings (IDRs) and senior unsecured rating and F1 short-term IDRs, according to a Thursday filing.