Market Overview - Japan's Nikkei share average fell 3% on Tuesday, marking its largest decline in over seven months, with the index dropping as much as 3.3% to 48,661.52, its lowest level since October 23 [1][7] - The broader Topix index also declined by 2.49% to 3,264.11 [1][7] Investor Sentiment - Investor sentiment worsened significantly after the Nikkei fell below the key 50,000 level, leading to an accelerated sell-off [1][7] - Some investors expressed interest in buying shares on a dip but chose to wait for further declines before making purchases [2][7] U.S. Market Influence - U.S. stocks ended sharply lower, with the S&P 500 and Nasdaq closing below a key technical indicator for the first time since late April, as investors anticipated quarterly results from retailers and Nvidia [2][7] - Nvidia, a major player in the AI sector and the world's largest company by market value, is set to report earnings after the market closes on Wednesday [5][7] Sector Performance - High-profile technology stocks experienced significant sell-offs, a common trend when investors adopt a risk-off approach [6][7] - Fibre optic cable manufacturers, which benefit from the AI trade, saw declines, with Fujikura and Sumitomo Electric Industries losing 9% and 7.45%, respectively [6][7] - Retail stocks, including Ryohin Keikaku, which operates Muji brand stores, fell sharply after a previous session decline of 9.4%, influenced by China's travel warning to its citizens regarding Japan amid diplomatic tensions over Taiwan [6][7]