Japanese tech stocks fell sharply for a second day running on Tuesday following a plunge in US tech stocks after the emergence of a low-cost Chinese generative AI model.

US chip-maker Nvidia led a rout on Wall Street, falling nearly 17 percent on fears that Chinese firm DeepSeek's chatbot could threaten US dominance in artificial intelligence.

In Tokyo, shares in Advantest, a chip-testing firm that supplies Nvidia, was down 10 percent, adding to an 8.6-percent plunge on Monday.

Softbank, part of a $500-billion AI infrastructure push announced last week by US President Donald Trump, fell almost six percent after dropping 8.3 percent on Monday.

The broader Nikkei 225 index was down 1.62 percent.

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