TOKYO, Jan 14 (Reuters) - Japan's Nikkei share average

slumped on Tuesday as investors shed semiconductor-sector stocks

after the U.S. government said it would further restrict

artificial intelligence (AI) chip and technology exports.

The Japanese market, coming off a holiday on Monday, was

also catching up to the global equities selloff after strong

U.S. jobs data on Friday spurred market participants to

contemplate the potential for no Federal Reserve interest rate

cuts this year.

The Nikkei index ended the morning session down

1.84% at 38,469.58. It had dropped as much as 2.2% to 38,332.91,

its lowest since Dec. 2, as selling accelerated after the

benchmark tumbled through its 200-day moving average of 38,696.

The broader Topix fell 1.27%.

The Nikkei is headed for a fourth straight day of declines,

slumping about 4% since Jan. 7.

Japanese stocks, much like its global peers, were also

weighed down by local government bond yields hitting fresh

14-year peaks, tracking the surge in U.S. yields since the jobs

data.

Adding to the air of caution is the release of U.S. consumer

inflation data on Wednesday as well as the start of the U.S.

earnings season.

On the day, 184 of the Nikkei's 225 components declined,

while 40 rose and one was flat.

The biggest decliner in both percentage and index points

terms was chip-testing equipment maker Advantest ( ADTTF ), an

Nvidia ( NVDA ) supplier, which plunged 7.8%. Nvidia ( NVDA ) dropped 2%

overnight.

Tech was the worst-performing Nikkei sector, sliding 2%.

Japanese earnings reports also spurred some eye-catching

moves.

Yaskawa Electric ( YASKF ) sagged 4.7%, while Ryohin Keikaku ( RYKKF )

, owner of the MUJI stores, leapt 5.9% to be the

Nikkei's biggest percentage riser.

Energy shares also outperformed due to a rise in oil prices.

Refiner Inpex ( IPXHF ) advanced 1.6%.