TOKYO, July 28 (Reuters) - Japan's Nikkei share average fell

more than 3% on Tuesday, dragged down by heavy losses in

chip-related stocks after their U.S. peers closed lower

overnight.

The Nikkei was down 3.59% at 62,599.14 as of 0034

GMT, while the broader Topix was lower 2.44% at

3,966.87.

"This is not a broad selloff, or the market is not on the

risk-off sentiment," said Daisuke Hashizume, senior strategist

at Daiwa Securities.

"Investors are cautious about buying stocks before earnings

of big tech firms in the U.S. and Japan. There are uncertainties

in the market."

Nvidia ( NVDA ) fell 4.9% overnight and the Philadelphia

semiconductor index extended its recent selloff, falling

2.2%. The index is down 21% from its record-high close on June

22, but up 63% in 2026.

South Korea's benchmark KOSPI was down 7% in early

trade on Tuesday.

The Nikkei's ⁠moves have been heavily influenced by the

tech-heavy KOSPI and the U.S. Philadelphia semiconductor index.

Chip-related Advantest ( ADTTF ) and Tokyo Electron ( TOELF )

fell 7.52% and 8.84%, respectively.

Bank shares, which had been rising on prospects of an early

Bank of Japan interest rate hike, also fell, with Mitsubishi UFJ

Financial Group ( MUFG ) and Sumitomo Mitsui Financial Group ( SMFG )

losing nearly 3% each.

Of the more than 1,500 stocks trading on the Tokyo Stock

Exchange's prime market, 31% rose, 64% fell and 3% traded flat.