Mumbai, July 8 -- Japanese stocks closed sharply lower on Wednesday, extending losses from the previous session as weak sentiment in global markets weighed on investors. The Nikkei 225 fell 2.11% to 66,819, while the broader Topix Index lost 1.37% to 4,006.

Technology stocks came under pressure after an overnight selloff on Wall Street, with semiconductor shares leading the decline. Investor sentiment was also affected by reports that China's DeepSeek is developing its own AI chip, raising concerns about increased competition in the sector.

Markets were further weighed down by rising tensions in the Middle East and higher oil prices after the US carried out fresh airstrikes on Iran following recent attacks on ships passing through the S...