Japanese stocks fell to close in the red on Tuesday as US Treasury bond yields hit almost a 20-year high amid investor concerns about uncertainty on future government spending and inflation fears.

The benchmark Nikkei 225 closed down 1,759.52 points, or 2.54%, at 67,460.73.

Oil prices extended gains after the temporary US-Iran truce deadline expired, heightening concerns over future escalation, with Tehran issuing fresh threats of "fully offensive" military operations.

On the corporate side, ANA Holdings (TYO:9202) said that its subsidiary All Nippon Airways and Saudi-based Riyadh Air have signed a memorandum of understanding, expanding connectivity beyond networks to destinations between Saudi Arabia and Japan, according to a Tuesday release.

Also, Pan Pacific International Holdings (TYO:7532) posted a 22% year-over-year increase in attributable profit for the fiscal year 2026 to 110.1 billion yen from 90.5 billion yen.