Japan's Nikkei falls after Wall Street's weak finish

Nikkei falls: Japan's Nikkei share average retreated on Tuesday, weighed down by Wall Street's weak finish overnight and rising US yields on reduced bets of another large rate cut following Friday's strong jobs report.

The Nikkei .N225 was down 0.8 per cent at 39,016.79, as of 0008 GMT, after closing 1.8 per cent higher on Monday. The broader Topix .TOPX was down 0.98 per cent to 2,712.59.

Wall Street's three major indexes closed down around 1 per cent on Monday while Treasury yields rose, as traders tamped down bets for Federal Reserve interest-rate easing and worried about the Middle East conflict's impact on oil prices.

US Treasury yields climbed, with the yield on the benchmark 10-year note rising to its highest since Aug. 1.

Technology start-up investor SoftBank Group 9984.T fell 2.12 per cent to drag the Nikkei the most. Uniqlo brand owner Fast Retailing 9983.T slipped 0.63 per cent.

All but four of the Tokyo Stock Exchange's 33 industry sub-indexes fell, with the brokerage sector .ISECU.T declining 1.87 per cent to become the worst performer.