Tokyo stocks were mixed Monday morning with early losses in exporters on a stronger yen later offset by dip-buying and strong gains in insurer shares with raised earnings outlooks.

Erasing early losses, the 225-issue Nikkei Stock Average gained 8.40 points, or 0.09 percent, from Friday to 9,797.75. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 3.21 points, or 0.37 percent, to 870.80.

Gainers were led by insurance, glass and ceramics, and nonferrous metal issues. Major decliners included the textile, sea transport, and oil and coal product sectors.

Tokyo stocks opened lower, with the U.S. dollar trading in the upper 89 yen range Monday morning, after falling in New York on Friday as the October U.S. jobless rate shot up to 10.2 percent, its highest level in 26 years and six months.

Investors fret about a weaker dollar eroding Japanese exporter profits repatriated from overseas. The dollar rose slightly to hover around the 90 yen line in late morning trading.

"The Nikkei index gradually turned higher, spurred by futures-led buying, as the market level is technically in the zone ripe for buying," said Hiroichi Nishi, equity manager at Nikko Cordial Securities Inc. "Dip-buying is supporting the market, though there is still a lack of incentives to chase stocks up further."

The insurance sector outperformed the market by advancing sharply after two major insurers raised their April-September profit outlooks. But overall stocks moved within a narrow range as investors await a slew of economic indicators this week, including Japanese machinery orders data and Chinese trade and industrial output figures, brokers said.

"While the macroeconomic environment is improving, investors are still uncertain about the new government's policymaking, wary of more financing plans by Japanese companies, and concerned about the strengthening yen," Nishi said.