TOKYO, Oct 1 (Reuters) - Japan's Nikkei share average hit its lowest close in two months on Thursday, with shares of exporters hurt by a stronger yen, while uncertainty about the policies of the country's new government dampened investor confidence.
The benchmark Nikkei began the second half of Japan's fiscal year on a weak note, sliding 1.5 percent to 9,978.64, its lowest finish since July 24.
The broader Topix fell 1.5 percent to 896.12.
Banking shares, including Mitsubishi UFJ Financial Group, stayed under pressure in the wake of financial services minister Shizuka Kamei comments in introducing a moratorium on the repayment of the principal on mortgages and bank loans to help small and midsize businesses. (Reporting by Aiko Hayashi)