Nikkei down over 2 pct on oil, inflation fears

(Updates to midmorning)

TOKYO, June 9 (Reuters) - Japan's Nikkei stock index fell 2.3 percent on Monday, battered by surging oil prices and U.S. inflation fears fed by the worst rise in unemployment for 22 years, with Canon Inc (7751.T) and other exporters hit by a weaker dollar.

Energy stocks were one bright spot, with oil and gas field developer Inpex Holdings Inc (1605.T) climbing after oil CLC1 on Friday soared $11, its biggest ever one-day spike in dollar terms, while the dollar's recovery to the 105 yen level offered some support JPY=.

But market players were wary given Friday's 3 percent tumble on Wall Street.

"The dollar's rise back to 105 yen is providing a bit of support but otherwise, today's situation is inevitable, with the market poised for a bit of downward correction," said Yutaka Miura, senior technical analyst at Shinko Securities.

"Even in Japan, signs of inflation are increasing as prices rise. While this is a bit of a relief from the deflation, without any increase in salaries we can't term this a good situation." At 0042 GMT the benchmark Nikkei .N225 was down 348.76 points at 14,140.68, its lowest in nearly a week. The broader Topix was down 2.1 percent at 1,398.46.

Canon was down 3.9 percent at 5,480 yen, becoming one of the largest drags on the Nikkei 225 by volume weight. Industrial robot maker Fanuc (6954.T), another exporter, slid 3.4 percent to 11,300 yen and Honda Motor Co (7267.T) was down 3.1 percent at 3,740 yen.

Steelmakers were battered as well, with JFE Holdings Inc (5411.T) sliding 5 percent to 6,010 yen and Kobe Steel Ltd (5406.T) down 4.7 percent at 346 yen.

One of the few bright spots were energy and resource-linked shares, with Inpex climbing 3.9 percent to 1.35 million yen and trading houses also crawling higher.

Marubeni Corp (8002.T) rose 1.6 percent to 959 yen and Sojitz Corp (2768.T) was up 1.3 percent at 395 yen. Mitsubishi Corp (8058.T) rose 0.8 percent to 3,650 yen. (Reporting by Elaine Lies;Editing by Chris Gallagher)