(Updates to midday)

TOKYO, May 12 (Reuters) - Japan's Nikkei share average dipped 0.2 percent on Monday, down for a third day, dragged lower by exporters such as Honda Motor (7267.T: Quote, Profile, Research) on a firmer yen against the dollar.

Financials also extended losses, with Japan's largest bank Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research) falling 2.9 percent amid rekindled concerns about the health of the sector following a massive loss by American International Group (AIG.N: Quote, Profile, Research).

The benchmark Nikkei average .N225 ended the morning down 23.3 points at 13,632.04. The broader TOPIX index shed 0.7 percent to 1,331.89.