* Japan stocks on track for third day of losses
* Selling accelerates on futures selling
* Investors await Obama speech on jobs steps
* Toshiba slides on equity financing fears
By Ayai Tomisawa
TOKYO, Sept 6 (Reuters) - Japan's Nikkei average fell more than 2 percent to a six-month low on Tuesday after sovereign debt fears pummelled European stocks and as investors worry upcoming U.S. job measures will not be enough to boost confidence in the slowing U.S. economy.
Analysts said selling accelerated in the afternoon after investors including commodity trading advisors placed sell orders in Nikkei futures as U.S. stock futures fell. S&P 500 e-mini futures <0#ES:> were last down 2.8 percent and Dow Jones Industrial Average futures <0#DJ:> dropped 2 percent.
"It's mainly because of weakness in the euro. Programme traders were selling futures around the world, and other investors also sold because they expect U.S. stocks to fall tonight," said Hiroichi Nishi, general manager at SMBC Nikko Securities.
Much of the market's attention has swung to President Barack Obama's jobs-focused speech to Congress on Thursday.
"Some think we can't expect much from Obama's speech, and as long as there are fears of a 'double dip' recession in the U.S. and sovereign debt problems and slowing growth in Europe, investors have no incentive to buy the cyclical shares that make up a big part of the Japanese market," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.
The Nikkei was down 2 percent at 8,609.72 in midafternoon trade, having dropped below the closely watched Aug. 22 low of 8,619.21. That marked its lowest since March 15, when stocks were sold off after the earthquake and tsunami.
The broader Topix index fell 1.9 percent to 741.48.
This Friday's settlement of futures and options also weighed on the market.
Toshiba Corp tumbled 6.4 percent to 293 yen on worries that it may turn to equity financing, after the Wall Street Journal reported that Toshiba is in talks to increase its stake in nuclear power plant firm Westinghouse Electric Co, by buying out Shaw Group's 20 percent holding.
Bank stocks slumped after Monday's sell-off of their European counterparts on euro zone sovereign debt fears.
Sumitomo Mitsui Financial Group was down 2.9 percent at 2,110 yen, after falling to a lifetime low of 2,108 yen earlier. Mizuho Financial Group was down 0.9 percent at 111 yen, after earlier matching its lifetime low of 110 yen. Mitsubishi UFJ Financial Group fell 3.3 percent to 323 yen.
But shares of electric power providers soared after new industry minister Yoshio Hachiro said he aims to resume operation of idled nuclear reactors in Japan as soon as possible.
Shikoku Electric Power Co gained 5 percent to 2,074 yen, Kansai Electric Power Co added 4.6 percent to 1,444 yen and Hokuriku Electric Power Co advanced 4.5 percent to 1,450 yen.
($1 = 76.970 Japanese Yen) (Additional reporting by Lisa Twaronite; Editing by Chris Gallagher)