Japan stocks edge lower, yen gains blamed

(Updates to midmorning)

TOKYO, April 7 (Reuters) - Japan's Nikkei benchmark edged down 0.2 percent on Monday, weighed by the yen's gains against the dollar and worries about U.S. economic health after the biggest monthly fall in jobs there in five years.

The fall was limited as oil field developer Inpex Holdings Inc (1605.T: Quote, Profile, Research, Stock Buzz) and other resource-linked shares, including trading houses, climbed after crude oil and precious metals rose overseas. But steelmakers fell on reports of a sharp rise in raw material costs. "Certainly signs of a slowing U.S. economy, such as the jobs figures, are an important factor for the market over the long-term," said Masayoshi Okamoto, head of dealing at Jujiya Securities. "But today its biggest direct impact on stocks comes from the fact that the job figures pushed the yen higher and have raised concerns that the U.S. Federal Reserve will cut interest rates again, which could push the yen still higher."

At 0041 GMT the dollar was trading around 101.90 yen <JPY=>. The Nikkei .N225 had shed 30.56 points to edge down to 13,262.66, while the broader TOPIX was down 0.2 percent at 1,286.10.

Nippon Steel Corp (5401.T: Quote, Profile, Research, Stock Buzz) was down 4 percent to 509 yen, extending its losses of the previous week, after more reports that Australian coking coal prices for export to Japan steel mills are set to treble to $300 a tonne. [ID:nSYD202861] [ID:nT244191

JFE Holdings (5411.T: Quote, Profile, Research, Stock Buzz) slid 3.3 percent to 4,470 yen and Japan Steel Works Ltd (5631.T: Quote, Profile, Research, Stock Buzz) was down 1.2 percent to 1,823 yen.

Crude oil was climbing towards $107 a barrel, extending last week's late rebound after the dollar fell and a fire hit a U.S. refinery [ID:SP197359], and this buoyed oil-related shares.

Inpex Holdings rose 2.7 percent to 1.16 million yen, while oil distributor Nippon Oil Corp (5001.T: Quote, Profile, Research, Stock Buzz) gained 1.9 percent. (Reporting by Elaine Lies; Editing by Hugh Lawson)