TOKYO, Sept 4 (Reuters) - Japan's Nikkei share average

fell more than 3% on Wednesday, with chip-related stocks leading

the declines, as the market tracked Wall Street's biggest drop

since early August.

By 0110 GMT, the Nikkei was down 3.2% at 37,428.34.

The broader Topix was down 2.86% to 2,655.02.

U.S. stocks slumped on Tuesday, at the start of one of the

market's historically worst months, ahead of data likely to

influence how much the Federal Reserve will lower interest

rates.

The benchmark S&P 500 index, Nasdaq Composite Index

and the Dow Jones Industrial Average recorded

their biggest daily percentage declines since early August.

In Japan, chip-related giant Tokyo Electron ( TOELF ) fell

6%, tracking Nvidia's ( NVDA ) 10% drop. Peer Advantest ( ADTTF )

fell 6%. Technology investor SoftBank Group lost 5.6%.

(Reporting by Junko Fujita, Editing by Subhranshu Sahu)