* Nomura plan to raise up to $5.6 billion hits financials
* Banks also vulnerable on loan moratorium worries
* JAL tumbles as woes continue
TOKYO, Sept 25 (Reuters) - Japan's Nikkei stock average slid 2.5 percent on Friday, with Mitsubishi UFJ Financial Group and other financials hit hard after Nomura Holdings said it plans to issue up to $5.6 billion in shares.
Nomura shares were untraded due to a glut of sell orders after the announcement by Japan's largest broker, with investors appearing to focus on the negative technical impact of the step on Nomura's shares instead of the positive implications for the company's business operations.
Banks have also been vulnerable for more than a week, ever since financial services minister Shizuka Kamei proposed introducing a moratorium on the repayment of the principal on mortagages and bank loans to help small and midsize businesses.
"Basically, the drag on the Nikkei today is financials. They're being hit by Nomura and again by worries about Kamei's moratorium," said Masayoshi Okamoto, head of dealing at Jujiya Securities.
The benchmark Nikkei lost 258.8 6 points to 10,285.36, while the broader Topix fell 2.5 percent to 926.16.
An overnight fall on Wall Street, fed by worries that authorities might be curbing stimulus measures too soon, saw the S&P 500 hit by its worst two-day drop in three weeks and also weighed on sentiment.
World central banks said they would scale back infusions of U.S. dollars into their banking systems, fuelling unease triggered a day earlier when stocks sold off following the U.S. Federal Reserve's decision to slow purchases of mortgage debt -- a key pillar of its efforts to support mortgage lending.
But Japanese market analysts said the impact of this was limited and far outweighed by the fall in financial shares.
Nomura was untraded, with the price indicated at 573 yen -- down 15.9 percent from Thursday's close -- after announcing the share sale, its second since it bought the European and Asian operations of Lehman Brothers, targeting investments and tighter capital requirements.
Other financials fared poorly.
Mitsubishi UFJ Financial Group lost 4.9 percent to 501 yen, while Sumitomo Mitsui Financial Group fell 4.2 percent to 3,160 yen. Mizuho Financial Group lost 4.4 percent to 176 yen.
The securities subindex tumbled 10.3 percent, becoming the biggest loser among the subindexes, while the banking subindex lost 3.7 percent.
Japan Airlines was battered after it pleaded on Thursday for a government bailout. But the new transport minister held back his support on concerns the carrier's cost-cutting plans would not be enough.
JAL shares lost 7.6 percent to 132 yen. (Reporting by Elaine Lies; Editing by Chris Gallagher)