Tokyo stocks were flat Tuesday morning, as buying on dips amid continued optimism about Japanese equities offset moves to lock in gains after a recent rally.
The 225-issue Nikkei Stock Average fell 49.72 points, or 0.12 percent, from Monday to 40,364.40. The broader Topix index was up 3.58 points, or 0.13 percent, at 2,781.22.
The U.S. dollar moved narrowly in the lower 151 yen range in Tokyo amid wariness over a possible yen-buying intervention by Japanese authorities, dealers said.
At noon, the U.S. dollar fetched 151.33-34 yen compared with 151.37-47 yen in New York and 151.32-33 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.0841-0845 and 164.06-13 yen against $1.0833-0843 and 164.05-15 yen in New York, and $1.0813-0814 and 163.63-67 yen in Tokyo late Monday afternoon.
Stocks were directionless, fluctuating around the previous day's closing levels, as investors took a breather after recent surges and falls on Wall Street overnight added to the selling pressure.
But the market was supported by bargain-hunting after the Nikkei shed almost 500 points the previous day, as well as buying to secure dividend rights before the end of the fiscal year, analysts said.
"While there might not be any catalysts to move the market as a whole today, (investors) will likely be actively searching for trading cues among individual stocks," said Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co.
