(Updates at 0600 GMT)
TOKYO, Sept 4 (Reuters) - Japan's Nikkei share average
fell more than 4% on Wednesday, as chip-related stocks followed
AI darling Nvidia ( NVDA ) lower and soft U.S. manufacturing data
reignited fears of a hard landing for the economy.
The Nikkei closed 4.24% lower at 37,047.61, marking
its lowest close since Aug. 15 and biggest decline since Aug. 5.
The broader Topix fell 3.65% to 2,633.49.
"Today's decline was a reaction to the sharp recovery from
the big losses in mid-August," said Tomochika Kitaoka, chief
equity strategist at Nomura Securities.
"The market has turned cautious about the state of the U.S.
economy and will remain cautious until the non-farm payrolls
data due on Friday."
The Nikkei fell more than 12% to 31,458.42 on Aug. 5 in its
biggest decline since Black Monday amid U.S. recession fears and
a sharply stronger yen.
On Wednesday, a stronger yen also weighed on local equities,
many of which are exporters.
"What is different now from then is that the yen is no
longer on short positions. Back then, the yen rose as investors
unwound carry trade," Kitaoka said.
Wall Street closed sharply lower on Tuesday, with Nvidia ( NVDA )
tumbling 10% as investors reined in their enthusiasm
about artificial intelligence.
Market sentiment was also hit as Institute for Supply
Management data showed U.S. manufacturing remained subdued.
In Japan, chip-related giants tracked Nvidia ( NVDA ) lower, with
Tokyo Electron ( TOELF ) and Advantest ( ADTTF ) shedding 8.55%
and 7.74%, respectively.
Bucking the trend, Nitori Holdings ( NCLTF ), which imports
most materials for furniture and home interior goods, rose
2.56%.
Fuji Soft jumped 7.36% after U.S. buyout fund Bain
Capital said it would make a counter-offer to buy the software
developer that would exceed a rival offer from equity fund KKR
.
All the 33 industry sub-indexes on the Tokyo Stock Exchange
fell, with energy explorers shedding 6.4% to become
the worst performer.
Of 225 components in the Nikkei, 214 stocks fell, while 11
rose.