Tokyo: The Japanese Nikkei index fell on Tuesday to its lowest level in more than seven months, as investors sold technology company shares after Wall Street plunged sharply last night.

According to Qatar News Agency, the Nikkei declined 3.2 percent to 48,702.98 points at the close, marking its largest daily drop since April 9. The broader Topix index slipped 2.9 percent.

US stocks ended on Monday with a sharp drop, as both the S and P 500 and Nasdaq closed below a key technical level for the first time since April, at a time when investors are preparing for the quarterly results of retail companies and chip-giant Nvidia. Investors are also waiting for this week's long-awaited US jobs report.

Shares of SoftBank Group tumbled 7.5 percent, chip-equipment maker Tokyo Electron fell 5.5 percent, and Advantest, a chip testing equipment manufacturer, lost 3.7 percent.

Fiber-optic cable makers, which benefit from AI trading, also dropped, with Fujikura shares down 9.9 percent and Sumitomo Electric Industries off 9.1 percent.