Japanese stocks and government bonds extended losses on Tuesday, as sentiment cooled on concerns about a diplomatic spat between Tokyo and Beijing and fiscal health at home.
The Nikkei 225 index fell 3.2%, the biggest drop since April 9, while the yield for the 40-year government bond jumped as much as 8 basis points to 3.68%, its highest level since the securities debuted in 2007.

AloJapan.com