Mumbai, July 28 -- Japanese stocks ended sharply lower on Tuesday, with the Nikkei 225 falling 3.95% to 62,365, its lowest level in more than two months, while the broader Topix Index lost 2.52% to 3,964.

The decline was led by semiconductor and technology stocks after a sharp overnight selloff in US chipmakers. Investors were worried that strong spending on artificial intelligence could slow if major cloud companies reduce their capital investments, raising concerns about future growth in the sector.

Among the biggest losers were Kioxia Holdings, SoftBank Group, Advantest, Taiyo Yuden, and Tokyo Electron, all of which posted steep declines. Banking stocks also came under pressure, with Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financ...