In an attacking performance that would have pleased manager Bobby Robson, Gary Speed bagged a brace and Andy Griffin grabbed his first goal as a Magpie.
Speed gave The Geordies the lead on six minutes when he volleyed home a cross from Shearer after the England man dispossessed Oleg Luzhny deep in the Arsenal half.
Newcastle kept the lead for a mere 60 seconds as Kanu replied for The Gunners when he showed exceptional skill to chip Shay Given from distance.
Croatian international Davor Suker, in probably his last game for Arsenal, was guilty of a glaring miss when he scooped over the bar from five yards when it seemed easier to score.
Shearer's 300th career goal will long be remembered on Tyneside, as his rasping 25-yard free-kick thundered into the top corner, albeit with the aid of a slight deflection.
Stefan Malz restored parity 10 minutes into the second half when he raced clear before curling past Given from the edge of the box.
Welsh international Speed gave Robson’s men the lead once again when he nodded home from a Nolberto Solano corner with half an hour remaining.
Griffin grabbed his first goal as a Magpie when he confidently slotted the ball over Alex Manninger after 63 minutes, a strike that will have done the former Stoke man the world of good after a disastrous, injury ravaged, season.
