Japanese stocks fell for the second day in a row on Thursday, tracking Wall Street, which closed lower on Wednesday, as rising bond yields in the United States and Japan weighed on investor sentiment.
Japan's Nikkei index fell 1.68 percent to close at 32,159.28 points, after falling 2.3 percent, its biggest daily loss in the previous session.
The broader Topix index fell 1.45 percent to 2,268.35 points.
The Nikkei index has risen about 5 percent through Thursday from its lowest level in July.
Japanese 10-year government bond yields rose to the highest level in more than nine years after US 10-year bond yields rose overnight, prompting the Bank of Japan to conduct an emergency bond purchase.
The yen continued its decline after the Bank of Japan announced the emergency purchase, to record a four-week low of 143.89 yen per dollar, limiting the Nikkei's losses.
Wall Street closed lower on Wednesday, with the Standard & Poor's 500 and Nasdaq indexes falling for the second day in a row, a day after Fitch downgraded the US government's credit rating.
TDK shares plunged 10.23 percent after the sensor maker cut its full-year outlook.
Similarly, Yamaha shares fell 14.57 percent on the back of the musical instrument maker lowering its annual profit forecast.
But Kawasaki Kisen bucked the trend, rising 4.05 percent after the shipping company, which includes an investment fund among its shareholders, announced a share buyback in the previous session.
Its peer Nippon Yusen also jumped 7.24 percent to top the Nikkei index, after announcing a buyback of 16.7 percent of existing shares on Thursday.
