TOKYO, Nov 4 (Reuters) - Japan's Nikkei share average tumbled 2% on Friday, as the market reacted to hawkish comments by Federal Reserve chair Jerome Powell on resuming trading following a national holiday.

However, the benchmark index found a floor amid a strong rally in Hong Kong and mainland shares, while reaction to domestic earnings reports also saw standout winners and losers.

The Nikkei sank 2.08% to 27,103.17, as of the midday break, on track for its worst day since Oct. 11. It dipped as low as 27,032.02 shortly before Chinese markets opened, and then traded mostly sideways.

Market players are closely watching the psychological 27,000 level that has provided fairly firm support for the past three weeks.

The broader Topix sagged 1.41% to 1,913.15.

For the week, the Nikkei is all but flat, while the Topix is headed for a 0.74% advance.

Wall Street stocks continued their slide on Thursday, a day after Fed Chair Jerome Powell quashed investor hopes for a dovish pivot by saying it was "very premature" to be thinking about pausing rate hikes.

"A situation where there's no clarity on the terminal rate is going to keep markets on edge," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.

"It's difficult for stocks to rise amid expectations for higher U.S. rates, and we're in a period of unstable market movement with investors cautious about downside risks."

Of the Nikkei's 225 components, 191 declined, 31 rose and three were unchanged.

Every sector fell, with rate-sensitive technology shares leading losses with a 2.34% drop. Utilities - a traditional defensive play - fared best, slipping 0.65%.

Online retailer Z Holdings was by far the worst performer, plunging 13.35% after its financial results disappointed.

At the other end, Mitsubishi Motors surged 16.48% following an upward revision to its earnings outlook. (Reporting by Kevin Buckland; Additional reporting by Hiroko Hamada)