Updates with closing prices

By Junko Fujita

TOKYO, July 8 (Reuters) - Japan's Nikkei share average closed at a near four-week low on Wednesday, as technology stocks fell after the tech-heavy Nasdaq posted sharp overnight losses.

The benchmark Nikkei .N225 fell 2.11% to 66,819.05, its lowest close since June 12. The index fell for a third straight session.

The broader Topix index .TOPX fell 1.37% to 4,006.43.

The Nasdaq .IXIC ended sharply lower on Tuesday, dragged by Micron Technology MU.O and other chipmakers on heightened concerns about the durability of Wall Street's AI-driven rally. .N

Semiconductor stocks across Asia and the United States also weakened after memory chip giant Samsung Electronics' 005930.KS earnings on Tuesday failed to meet investors' lofty expectations, prompting profit-taking in the sector.

"Investors cannot fully regain their confidence in AI shares," said Daisuke Hashizume, senior strategist at Daiwa Securities.

"Samsung Electronics flagged a strong outlook but the market was not convinced that prices would keep rising," he said.

The South Korean benchmark KOSPI .KS11 on Wednesday dropped more than 20% from its previous record close on June 22, a milestone commonly considered to confirm a bear market.

Shares of chip-making equipment maker Tokyo Electron 8035.T fell 3.05%, while chip-testing equipment maker Advantest 6857.T lost 4.69%. High-flying Taiyo Yuden 6976.T, a manufacturer of multi-layer ceramic capacitors to regulate power in AI servers, fell 8%.

Memory maker Kioxia 285A.T erased early gains to end 0.73% lower.

Phone company KDDI 9433.T rose 1.04% as investors rotated their target to shares sensitive to domestic demand.

Of more than 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 36% rose, 61% fell and 2% traded flat.