Nikkei edges up, boosted by oil but banks weigh

(Updates to midsession)

TOKYO, May 19 (Reuters) - Japan's Nikkei stock average clawed up 0.1 percent on Monday as near record-high oil prices boosted Mitsubishi Corp (8058.T) and other trading houses, with other energy-related shares climbing.

But banks dragged on the market, tracking a fall in their U.S. peers after Merrill Lynch downgraded two large regional U.S. banks, citing a bleak outlook for such institutions, with profit-taking kicking in after the Nikkei had its strongest week in three months.

The benchmark Nikkei .N225 eked out a 13.92 point gain, crawling up to 14,233.40. The broader Topix was up 0.2 percent at 1,399.05. (Reporting by Elaine Lies,)