Japanese shares fall over 2% on Wall Street losses, stronger yen

TOKYO, March 11 (Reuters) - Japanese shares fell more than 2% on Tuesday, tracking Wall Street's sharp losses overnight on growing fears that the U.S. economy would fall into recession, while a stronger yen also weighed on exporters.

The Nikkei index .N225 was down 2.2% at 36,219.68, as of 0153 GMT, after falling below 36,000 level to touch its lowest since September 17. The broader Topix .TOPX fell 2.5% to 2,633.86, hitting its lowest since October 28.

U.S. stocks plunged on Monday as relentless tariff wrangling and mounting anxieties from a possible federal government shutdown gave rise to fears that the U.S. economy could be careening into recession. .N

"The Topix had been performing better relative to the Nikkei, but it was hit hard as well today as value shares fell," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute.

Banks, a symbol of value shares and which had been rising amid expectations of aggressive Bank of Japan rate hikes, slipped on Tuesday.

Mitsubishi UFJ Financial Group 8306.T and Sumitomo Financial Group 8316.T fell more than 3% each. Mizuho Financial Group 8411.T lost 5.8%.

The yen rose to its highest in nearly five months as fears about a tariff-driven slowdown in U.S. growth rattled the dollar.

A stronger Japanese currency tends to hurt exporter shares, as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan.

Toyota Motor 7203.T fell 3.7% to drag the Topix the most. Game maker Sony Group 6758.T lost 3.9%.

Among chip-related stocks, Advantest 6857.T and Tokyo Electron 8035.T slipped 3.88% and 2.82%, respectively. Technology investor SoftBank Group 9984.T fell 3.8%.

Air-conditioner maker Daikin Industries 6367.T rose 0.85% to provide the biggest support to the Nikkei.

All of the Tokyo Stock Exchange's 33 industry sub-indexes fell, with the nonferrous metals sector .INFRO.T falling 4.8% to become the worst performer.

Cable makers Fujikura 5803.T and Furukawa Electric 5801.T, a gauge for data centre investments, lost 6% and 8%, respectively.