* Nikkei at 1-mth low, marks 2-mth trough at one point
* Riots in Egypt prompt investors to move out of equities
* Yen at 1-mth high vs dollar, knocks exporters
* Nikkei may target 200-day moving average of 9,871-analyst
* Fujitsu, Konica Minolta slide after cutting annual outlooks
By Antoni Slodkowski and Ayai Tomisawa
TOKYO, Jan 31 (Reuters) - Japan's Nikkei hit a two month low at one point on Monday as anti-government rioting in Egypt prompted investors to shun riskier assets, with analysts adding that the blow to sentiment comes at a time when the benchmark appeared due for a correction.
Disappointing earnings outlooks from Fujitsu and Konica Minolta also dragged the Nikkei lower, while the yen hovering at four weeks high versus the greenback provided additional pressure.
But oil-related stocks like Japan's top oil explorer Inpex gained as Brent crude surged to a 28-month peak near $100 a barrel on worries that the unrest in Egypt could spread and disrupt oil shipments through the Suez Canal.
The Nikkei has gained some 11 percent since early November as foreigners piled into lagging Tokyo equities, but market players say that bull-run could be drawing to a close, despite expectations of strong October-December results overall from Japanese corporations.
Over the past three sessions, foreigners, who stand for over 60 percent of all investors in Tokyo, have placed net sell orders before the market opened.
"As you can see in pre-market foreign sell orders over the past few days, there have been changes in foreign sentiment towards Japanese stocks," said Yoshinori Nagano, a senior strategist at Daiwa Asset Management.
By midafternoon the benchmark Nikkei had lost 1.1 percent, or 112.07 points, to 10,248.60. It hit its lowest level since Dec. 3 at one point, but recouped some of its losses later.
The broader Topix shed 0.9 percent to 911.17.
"Momentum has been falling... and in the short term it has broken the support of the 50-day moving average (of 10,277) and is looking to test the 200-day moving average at 9,871," said Jamie Coutts, a technical analyst at BGC Securities.
EARNINGS IN FOCUS
This week marks the peak for October-December earnings season with investors awaiting signs of sustained recovery in results of economic bellwethers such as Sony Corp and Japan's biggest bank by assets Mitsubishi UFJ Financial Group.
Fujitsu Ltd tumbled 6.8 percent to 508 yen after Japan's largest IT vendor slashed its full-year operating profit forecast by more than a fifth, below expectations, as persistent weak demand for its data centres and other services defied expectations for a rebound.
Konica Minolta Holdings dived 7 percent to 799 yen after the maker of film used in liquid-crystal displays also slashed its full-year operating profit forecast 10 percent to 45 billion yen, below a consensus estimate for a 50.9 billion yen.
"Egypt is a big factor for some sectors, but overall the market has also wanted to snap up gains, especially Japanese institutional investors -- they do that every year around February, before reporting earnings in March," said Hiroaki Osakabe, a fund manager at Chibagin Asset Management.
A wider conflagration in the Middle East could threaten the flow of oil at a time when policymakers in emerging markets are already bedevilled by high food and fuel prices and some developed economies are gaining momentum.
"Market is also focusing this week on U.S. private employment figures out on Wednesday and whether China does more monetary tightening before the Lunar New Year holiday that also starts on the same day," said Osakabe.
He added that if any of these bring any negative news the Nikkei may see more sell-offs and head towards the psychologically sensitive line of 10,000.
Among oil-related stocks, Inpex gained 0.9 percent to 528,000 yen and JX Holdings added 0.7 percent to 555 yen. (Editing by Joseph Radford)