Japan stocks fall over 2 pct, erasing week's gains

(Updates to midafternoon)

TOKYO, Feb 20 (Reuters) - Japanese stocks slid over 2 percent on Wednesday, erasing the week's gains, as property shares such as Sumitomo Realty & Development Co Ltd (8802.T: Quote, Profile, Research, Stock Buzz) tumbled and investors locked in profits amid worries about the economy.

Surging oil prices have raised concerns about inflation in the United States, including whether the Federal Reserve will be able to cut interest rates in March.

U.S. crude oil CLc1 jumped to an all-time high above $100 a barrel on Tuesday, with supply constraints helping to drive up the costs of other raw materials, though it had fallen below that level in Asian trade on Wednesday.

"Investors bid up the market earlier this week on expectations that U.S. stocks would do well once Wall Street returned from a holiday, but those hopes were betrayed," said Yutaka Miura, chief technical analyst at Shinko Securities.

"Taking this along with the high oil prices and worries about the U.S. economy, investors decided it was a good time to lock in profits."

At 0429 GMT the benchmark Nikkei .N225 was down 2.4 percent at 13,430.06, its lowest since Feb 15. The broader TOPIX index was down 2.4 percent at 1,312.84.

Konica Minolta (4902.T: Quote, Profile, Research, Stock Buzz) plunged 7.3 percent to 1,365 yen after Credit Suisse cut its rating to "neutral" from "outperform" citing a weak office equipment market, competition in the LCD film market and the impact of a strong yen.

High-tech shares also weighed on the market, with industrial robot maker Fanuc Ltd (6954.T: Quote, Profile, Research, Stock Buzz) down 3.5 percent at 9,870 yen, becoming the biggest individual drag on the Nikkei.