Japan’s benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, closed the day down 178.67 points, or 0.55 percent, at 32,315.99, snapping a three-day winning streak.

The broader Topix index, meanwhile, finished 33.74 points, or 1.44 percent, lower at 2,308.75.

Tokyo stocks were down most of the day following Wall Street declines on concerns over higher borrowing costs as U.S. long-term bond yields jumped overnight.

The yield surge came after the CPI, a key inflation indicator, rose a faster-than-expected 3.7 percent from a year earlier and 0.4 percent on the month.

At the end of the week, the markets are caught in the tug of war over the outlook for U.S. interest rates. On the one hand, there are strong indications from Fed officials and released Fed minutes that suggest rate hikes are likely finished. On the other hand, economic data is not yet aligned with this narrative, analysts said.

On the top-tier Prime Market, decliners were led by textile and apparel, service and rubber product issues.

Nissan Motor slipped 17.3 yen, or 2.7 percent, to 622.2 yen, and Toyota Motor was down 52.5 yen, or 1.9 percent, to 2,687.5 yen.