Nikkei tumbles 2.1 pct, exporters hit by yen

(Updates to midmorning)

TOKYO, June 27 (Reuters) - Japan's Nikkei average fell 2.1 percent on Friday, led down by blue-chip exporters such as Sony Corp (6758.T) on a stronger yen, record oil prices and steep losses on Wall Street.

Financial shares also slid, with top lender Mitsubishi UFJ Financial Group (8306.T) down 3.2 percent, after Goldman Sachs forecast more write-downs at Citigroup (C.N) and Merrill Lynch & Co MER.N.

A broad sell-off in the Tokyo market, which extended its losses for a seventh day, came after the Dow industrial average .DJI plunged to a 21-month low.

"It can't be helped. There are only negative factors -- higher oil prices, the credit crunch and a stronger yen," said Katsuhiko Kodama, a senior strategist at Toyo Securities.

Toyota Motor Corp (7203.T) and other automakers fell after General Motors' (GM.N) shares sank to their lowest in 53 years.

Goldman warned that the big U.S. automaker could have to raise capital and cut dividends in a brutal slowdown for the auto industry.

"Some may think the struggles of U.S. rivals could help Japanese automakers, but with the yen and oil situation, Japanese firms will be also negatively affected, especially Toyota, given its lineup of upscale models," Toyo's Kodama said.

As of 0047 GMT, the benchmark Nikkei .N225 was down 282.74 points at 13,539.58. The broader Topix index lost 2 percent to 1,318.05.

Sony fell 3.6 percent to 4,880 yen, Toyota fell 2.3 percent to 5,050 yen and Honda lost 3.7 percent to 3,610 yen.

Mitsubishi UFJ fell to 933 yen.

Among standouts was oil and gas field developer Inpex Holdings Inc, (1605.T) which rose 2.3 percent to 1.33 million yen.

Tokyo Electric Power Co (TEPCO) (9501.T) jumped 2.6 percent to 2,605 yen after it said it would revise its utility billing scheme for the first time in two years, which could lead to a rise in utility bills from January next year. [ID:nT212784] (Reporting by Taiga Uranaka; Editing by Michael Watson)