* JAL touches record low, Mitsui sold entire stake
* Banks drop amid concern about capital raisings
* Policy uncertainty, equity financing weigh -fund manager
TOKYO, Nov 24 (Reuters) - Japan's Nikkei average slipped 0.8
percent on Tuesday as a banking shares were sold on persistent
worries that more financial firms would tap the market for equity
financing and as a stronger yen hurt shares of exporters.
Japan Airlines Corp <9205.T> plunged to a record low on
worries about a possible bankruptcy, while consumer lender
Takefuji Corp <8564.T> fell nearly 7 percent after a two-notch
downgrade from rating agency Moody's to a level indicating a very
high credit risk.
"There's Japan-specific worries in the market which have come
from uncertainty about the new government's policies," said
Junichi Misawa, a senior fund manager at STB Asset Management.
"We still don't know how the government plans to boost the
competitiveness of Japan's economy or companies. We also have the
recent flurry of equity financing, coupled with a stronger yen."
The benchmark Nikkei <> fell 74.09 points to 9,423.59,
while the broader Topix <> declined 1 percent to 830.74 yen.
Tokyo markets were closed for a holiday on Monday.
Finance Minister Hirohisa Fujii said Japanese demand was weak
and fiscal policy alone could not revive it, putting pressure on
the Bank of Japan to respond to deflation. []
EXPORTERS DRAG
Exporters slid as the dollar stayed near a six-week low of
around 88.60 yen <JPY=> hit the previous day. Investors fret
about a stronger yen since it eats into exporter profits when
repatriated.
TDK Corp <6762.T> slipped 1.1 percent to 4,600 yen and Toyota
Motor Corp <7203.T> shed 1.7 percent to 3,380 yen. Canon Inc
<7751.T> slipped 0.9 percent to 3,370 yen.
JAL sank as much as 9.5 percent to a record low on investor
worries the struggling airline could face bankruptcy if it cannot
secure an agreement from its pensioners for benefit cuts.
[]
The stock price slide also follows news that Mitsui & Co
<8031.T> had sold its entire stake of 11.73 million shares in JAL
during the six months to Sept. 30. A spokesman for the trading
house did not say why it unloaded its shares, which were less
than half of one percent of the company..
JAL dived 7.4 percent to 88 yen, after earlier sinking to a
record low of 86 yen.
Third-ranked Sumitomo Mitsui Financial Group <8316.T> shed
3.9 percent to 2,705 yen and no. 2 bank Mizuho Financial Group
<8411.T> retreated 2.5 percent to 154 yen on worries that they
might follow Mitsubishi Financial Group <8306.T>, Japan's largest
bank, in announcing a large fundraising.
MUFG dropped 3 percent to 457 yen.
Takefuji lost 6.8 percent to 369 yen after Moody's downgraded
long-term debt issued by the consumer finance company by two
notches to Caa1 from B2.
Machine tool maker Mori Seiki <6141.OS> tumbled 11.2 percent
to 793 yen after saying it will raise up to 18.2 billion yen
($204 million) to invest in new equipment and to buy Sony Corp's
<6758.T> measuring equipment unit.
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)
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