TOKYO, Aug. 4 (Xinhua) -- Tokyo stocks extended losses on Monday as the market followed the declines on Wall Street, where concerns over a weakening U.S. economy had triggered a sell-off following softer-than-expected employment data.

The benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, closed at 40,290.70, down 508.90 points or 1.25 percent, from the previous trading day.

Selling pressure was broad-based, with semiconductor stocks, such as Advantest, leading the declines. Financial stocks, including banks and insurers, also dropped significantly as domestic long-term interest rates fell.

Additionally, a stronger yen against the U.S. dollar weighed on export-oriented stocks.

At one point, the Nikkei fell more than 900 points, briefly dipping below the psychologically important 40,000 mark. However, bargain-hunting by retail investors helped the market recover some ground in the afternoon session.

The broader Topix index fell for the first time in four trading days, down 32.45 points, or 1.10 percent, to 2,916.20.

Of the listed stocks on the Tokyo Prime Market, declining stocks outnumbered advancers, with 1,096 losing, 473 gaining, and 54 unchanged. ■