The benchmark fell 1.97% to 65,096.63 and later touched an intraday low of 64,832.10. Technology shares led much of the decline as investors reacted to higher bond yields and tighter interest rate expectations. The broader Topix also weakened early, falling 0.84% to 4,111.71. Japanese government bond yields rose at the same time, adding pressure to rate sensitive parts of the equity market. The morning selloff eased substantially before the closing bell. The Nikkei ended Monday at 66,311.93, down 93.63 points, or 0.14%, after recovering from its lowest level of the session. The Topix finished at 4,156.29, gaining 0.23% and reversing its earlier decline. Market breadth also improved during the day. Among Nikkei constituents, 131 stocks advanced, 91 declined and three ended unchanged. The final figures showed a much smaller loss than the steep fall recorded shortly after trading began.