TOKYO (Kyodo) -- Tokyo stocks fell for a fourth straight day Tuesday after briefly sending the Nikkei down over 2 percent, as concerns over the impact of additional U.S. trade restrictions for semiconductors led to a sell-off of technology shares.

The 225-issue Nikkei Stock Average ended down 716.10 points, or 1.83 percent, from Friday at 38,474.30. The broader Topix index finished 31.54 points, or 1.16 percent, lower at 2,682.58. Japanese markets were closed Monday for a national holiday.

On the top-tier Prime Market, decliners were led by electric appliance, machinery, and glass and ceramics product issues.

In the bond market, the yield on the benchmark 10-year Japanese government bond briefly rose to 1.250 percent, its highest level since April 2011, after a comment by Bank of Japan Deputy Governor Ryozo Himino strengthened expectation that the BOJ will hike interest rates at a monetary policy meeting next week.

Himino said in a speech that the policy board will discuss whether to raise interest rates at the upcoming meeting and reiterated that the BOJ will continue to tighten monetary policy if the economy moves in line with its expectations.

The yield closed 0.045 percentage point higher from Friday's close to 1.240 percent.

The U.S. dollar was mostly unchanged around the mid-157 yen range in Tokyo, with the remarks by the deputy governor having a limited impact on the exchange market, dealers said.

At 5 p.m., the dollar fetched 157.52-54 yen compared with 157.43-53 yen in New York at 5 p.m. Monday.

The euro was quoted at $ 1.0254-0255 and 161.53-57 yen against $1.0240-0250 and 161.25-35 yen in New York on Monday afternoon.

On the stock market, the Nikkei index briefly plummeted nearly 900 points as heavyweight chip-related shares were sold after the U.S. government announced steps to further restrict exports of semiconductors used for artificial intelligence to limit their flow to Russia and China.

"The curbs will cause hassle for companies that will be affected, as they will be required to gain approval from the U.S. government to conduct business," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

Tokyo Electron was down 3.7 percent at 26,020 yen, while Advantest dove 9.2 percent at 9,424 yen.

Sentiment was additionally hurt by speculation that the U.S. Federal Reserve will reduce its pace of interest rate cuts amid concerns over a resurgence of inflation after the release of stronger-than-expected December jobs data on Friday, analysts said.

Investors are now focused on the release of the U.S. consumer price index for December later this week, they said.