Japanese stocks fell on Monday, with the Nikkei 225 decreasing by 0.7% to 65,528. This decline followed losses from the previous session, driven by pressures on technology and AI-related shares ahead of Nvidia's earnings report. Investor sentiment was weakened by high global bond yields and ongoing concerns over inflation and increasing government debt, despite a US Treasury bond buyback last week. Tensions in the Middle East added to inflation worries, as the US is expected to impose new sanctions on Iran. Chip and AI-linked stocks, along with financial and consumer sectors, saw major declines.