TOKYO, May 11 (Xinhua) -- Tokyo stocks closed sharply lower Tuesday, with the benchmark Nikkei stock index tumbling over 3 percent as tech issues tracked their U.S. peers lower overnight, while cyclical issues here fell on concerns over Japan's increasingly severe COVID-19 situation.

The 225-issue Nikkei Stock Average dropped 909.75 points, or 3.08 percent, from Monday to finish at 28,608.59, marking its lowest closing level since April 21.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, fell 46.35 points, or 2.37 percent, to finish at 1,905.92.

The market's three-day winning streak was brought to an abrupt end, dealers here said, following a tech share selloff overnight with the U.S. Nasdaq composite index sinking more than 2 percent.

They added the selloff was triggered by rises in U.S. long-term interest rates overnight and concerns over inflation, with domestic cyclical issues, usually a fallback position for investors during such turbulence, being rejected due to Japan's COVID-19 crisis.

"The atmosphere in the market is bad," Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities, was quoted as saying.

"Even domestic cyclical shares, which should be bought on a day like today, were being sold. Investors could not find any reasons to buy Japanese stocks at a time when the pandemic in Japan shows little signs for slowing down," Arisawa said.

Other analysts noted that some profit-taking was seen as other Asian bourses such as the South Korean market took a hit, with concerns over the ongoing global semiconductor crunch continuing to take its toll.

"The market slide was boosted as investor sentiment was also worsened by declines in other markets such as South Korea where semiconductor and electronics issues have a big impact," Maki Sawada, a strategist at Nomura Securities Co.'s Investment Content Department, was quoted as saying.

"Selling was also focused on some companies sensitive to domestic demand, taking profits from their recent substantial gains," added Sawada.

She went on to say that the market was likely due to bounce back however as more major Japanese firms report earnings and profit outlooks that beat median analysts' expectations.

As for the U.S. dollar-yen pairing, ahead of the U.S. consumer price index for April set to be released on Wednesday, the U.S. dollar stayed predominantly in the upper 108 yen range amid a circumspect mood, traders here said.

The dollar was quoted at 108.94-95 yen at 5 p.m., compared with 108.78-88 yen in New York and 108.91-93 yen at 5 p.m. on Monday in Tokyo.

The euro, meanwhile, fetched 1.2141-2142 dollars and 132.27-31 yen against 1.2123-2133 dollars and 131.99-132.09 yen in New York and 1.2147-2149 dollars and 132.30-34 yen in late Monday afternoon trade in Tokyo.

By the close of play, machinery, precision instrument and information and communication issues comprised those that declined the most.

Among tech-issues taking a battering, Nikkei heavyweight SoftBank Group dragged down the broader sector, slumping 6.5 percent, while chip-linked issues including Sumco and Advantest dropped 5.4 and 5.5 percent respectively.

Taiyo Yuden fell 5.0 percent, Murata Manufacturing retreated 3.7 percent, while Sony Group ended the day 3.5 percent lower.

Panasonic sank 5.8 percent, after reporting a day earlier its sales in fiscal 2020 failed to meet market expectations.

Bucking the downward trend, Shionogi & Co. added 1.2 percent, however, following reports the drug maker could possibly start supplying Japan's first homemade COVID-19 vaccines later this year.

Issues that fell outpaced those that rose by 1,989 to 169 on the First Section, while 33 ended the day unchanged.

On the main section on Tuesday, 1,289.14 million shares changed hands, rising from Monday's volume of 1,126.70 million shares.

The turnover on the second trading day of the week came to 2,956.76 billion yen (27.19 billion U.S. dollars). Enditem

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