TOKYO (Kyodo) -- Tokyo stocks ended lower Tuesday, led by selling of technology shares on fears that demand for semiconductors used in artificial intelligence could weaken after a low-cost AI model was developed by a Chinese startup.

The 225-issue Nikkei Stock Average ended down 548.93 points, or 1.39 percent, from Tuesday at 39,016.87. The broader Topix index finished 1.17 points, or 0.04 percent, lower at 2,756.90.

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

The U.S. dollar climbed to the upper 155 yen range in Tokyo on speculation that inflation in the United States may surge again after President Donald Trump called for tariffs to be applied to semiconductor and pharmaceutical imports, dealers said.

On the stock market, chip-related issues remained under selling pressure after Chinese startup DeepSeek announced an AI model that was reportedly developed with far lower costs than its U.S. rivals, briefly sending the Nikkei down over 600 points.

The selling of chip shares will slow "if investors are assured that the Chinese model will not undermine the U.S. stronghold in AI," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.

But tech shares are likely to remain susceptible to declines if investors continue to doubt the dominance of U.S. firms, he added.

Meanwhile, the market was supported by firm bank shares as investors bought on hopes for improved profits after the Bank of Japan raised interest rates last week.