International Markets

Japan stocks mixed; markets eye US economy, Obama

11/09/09 04:39 EST

TOKYO -Japan stocks closed mixed Monday as investors struggled to find direction amid persistent economic and political uncertainties.

The benchmark Nikkei 225 stock average rose 19.64 points, or 0.2 percent, to 9,808.99 after recovering early declines. The broader Topix index lost 0.4 percent to 870.67.

U.S. stock indexes posted moderate gains Friday even after the government said the unemployment rate topped 10 percent last month for the first time since 1983. Investors took the weak jobs report as a sign that interest rates in the world's largest economy will stay low for the time being.

Still, the latest unemployment rate underscores Japanese doubts about the global economic recovery. Fumiyuki Nakanishi, chief equity strategist at SMBC Friend Securities, expects trading to stay stagnant this week.

"We don't know where the U.S. economy is headed," he said. "We don't know where foreign exchange is headed. And with Obama coming soon, there are questions about the future of U.S.-Japan relations."

President Barack Obama is scheduled to meet with Japanese Prime Minister Yukio Hatoyama in Tokyo before heading to China, Singapore and South Korea.

Among the day's biggest winners were insurance issues, with Mitsui Sumitomo Insurance Group Holdings Inc. surging 8.6 percent to 2,275 yen. Net profit at the nonlife insurer unexpectedly grew to 57 billion yen ($632.8 million), the company reported Friday after market close.

NTT DoCoMo Inc. also rose 1.6 percent to 130,800 yen after announcing a share buyback plan. The country's biggest mobile carrier said that it will buy back up to 160,000, or 0.38 percent, of its outstanding stock later this month.

However, exporters came under pressure amid concerns about a strong yen, which reduces the value of their overseas profits. The dollar fell under the 90 yen line Friday, though recovered slightly in Monday trading.

Nissan Motor Co. lost 2.3 percent to 642 yen, while Panasonic Corp. fell 2 percent to 1,228 yen.

In currencies, the dollar was trading at 90.20 yen from 89.97 yen late Friday. The euro stood at $1.4952 from $1.4885.