Japan's Nikkei flat after two days of gains

(Updates to midday)

TOKYO, June 2 (Reuters) - Japan's Nikkei stock average was flat on Monday, with gains by exporters like Sony Corp (6758.T) offset by profit-taking on the market's sharp rise late last week.

After the two days of gains, the market gyrated between positive and negative territory. Mitsubishi UFJ Financial Group (8306.T), Japan's largest lender, was up 3.3 percent after dipping immediately after the open.

The benchmark Nikkei average .N225 ended the morning up 7.46 points at 14,346.00. The broader Topix index rose 0.4 percent to 1,414.36. (Reporting by Taiga Uranaka)