TOKYO, Sept 1 (Reuters) - Japan's Nikkei share average fell to a one-month closing low on Thursday, dragged down by losses in chip-related stocks after Nvidia tanked overnight over a U.S. order to stop sales of top AI chips to China.
The Nikkei dropped 1.53% to close at 27,661.47, its lowest since Aug. 2. The broader Topix slipped 1.41% to 1,935.49.
U.S. stocks ended August with their fourth straight daily decline overnight, cementing their weakest performance for the month in seven years as worries about aggressive interest rate hikes from the Federal Reserve persist.
Federal Reserve Chair Jerome Powell last Friday indicated the central bank will keep raising interest rates to fight inflation, even as that causes pain for households and businesses.
"Unfortunately, investors have turned bearish," said Takatoshi Itoshima, a strategist at Pictet Asset Management Japan.
"The market was too optimistic about the Fed's stance, so Powell's remarks sounded too hawkish."
In Japan, chip giants Tokyo Electron and Advantest lost 3.35% and 4%, respectively.
Other heavyweights also fell, with Uniqlo clothing store owner Fast Retailing losing 1.45% and technology investor SoftBank Group slipping 0.93%.
Bucking the trend, house builder Sekisui House jumped 5.96% to become the top gainer on the Nikkei. Condominium developer Haseko rose 2.81%.
Nippon Steel rose 1.27% after a report said the steel maker and Toyota Motor agreed to raise the price of steel materials used for cars in a price hike that could reach up to 30%. Toyota slipped 2.33%. (Reporting by Junko Fujita; Editing by Rashmi Aich and Subhranshu Sahu)
