The U.S. dollar remained flat during overnight trading session in Tokyo as traders and exporters remained on the sidelines ahead of the major holidays.
The dollar was quoted at 104.43-45 yen at the end of trading in Tokyo up from 104.15-25 yen close on Friday in New York
The 225-issue Nikkei Stock Average rose 25.10 points, or 0.23 percent, to 11,103.42. The broader Tokyo Stock Price Index of all First Section issues on the Tokyo Stock Exchange dipped 1.59 points, or 0.14 percent, to 1,109.76.
Tokyo stocks remained mixed in largely directionless trading following Fridays rally as investors and traders prepared for the holiday season, the slowest trading time of the year.
Mining, nonferrous metal, rubber product and precision instrument issues were notable gainers with information and telecom, securities, pharmaceutical, pulp and paper, and marine transport issues leading the decliners.
Pharmaceutical shares were sold off following Pfizer surprise announcement of an increased risk of heart failure from the use of Celebrex, its star arthritis drug. Takeda Chemical Industries dropped 120 yen to 5,190 yen, and Yamanouchi Pharmaceutical declined 40 yen to 3,860 yen.
The day's volume leader was Kinugawa Rubber Industrial, which rose 31 yen to 280 yen. It was also the most heavily traded issue by value.
Winners beat losers 794 to 625, with 174 shares finishing the day unchanged. Volume on the TSE's main section was 1,228.17 million shares down from Friday's 1,245.14.
The TSE's Second Section index gained 10.73 points, or 0.37 percent, to 2,903.89 on a volume of 45.39 million shares.
In Osaka, the near-term March Nikkei 225 index futures contract ended at 11,110, up 20 points.
The 10 Year JGB futures for March delivery closed higher for the first time in over three trading sessions following the announcement that Japanese government will reduce the size of the future government bond offerings to bring down the amount of the debt outstanding. The 10 Year JGB futures for March delivery closed up 0.19 to 138.78.