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.

Stocks in Tokyo opened lower, with the U.S. dollar trading in the upper 89 yen range Monday morning, after falling in New York 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, 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.

On the First Section, declining issues outnumbered advancing ones 1,019 to 516, with 153 others ending the morning unchanged.

Mizuho Financial Group, the morning volume leader, lost 4 yen, or over 2 percent, to 175 yen. Value leader Mitsubishi UFJ Financial Group fell 2 yen, or about half a percent, to 484 yen.

The performance of exporters was mixed. Nissan Motor fell 16 yen, or over 2 percent, to 641 yen and Hitachi also lost over 2 percent. Honda Motor gained over 1 percent and Toshiba rose 8 yen, also more than 1 percent, to 514 yen.

Among insurers, Mitsui Sumitomo Insurance Group Holdings surged 170 yen, or over 8 percent, to 2,265 yen, and Tokio Marine Holdings climbed 100 yen, or over 4 percent, to 2,445 yen. Aioi Insurance jumped almost 9 percent.

Trading was thin, with volume on the main section coming to 777.27 million shares, down from Friday morning's 921.09 million.

The TSE's Second Section index was down 11.72 points, or 0.55 percent, to 2,120.22 on a volume of 59.75 million shares. On the Osaka Securities Exchange, the near-term December Nikkei 225 index futures contract was up 20 points to 9,800.