Tokyo stocks were mixed Wednesday morning due to growing uncertainties over diplomatic disputes between Japan and China. The dollar was trading lower against the Japanese yen but up versus the euro.
The Nikkei Stock Average of 225 selected issues added 2.49 points, or 0.02 percent, to end morning trade at 11,672.79 points. The index lost 75.34 points, or 0.64 percent, on Tuesday.
The dollar was trading at 107.57 yen at 11 a.m. Wednesday, down 0.19 yen from late Tuesday in Tokyo and below the 107.72 yen it bought in New York later that day.
Stocks opened higher on bargain hunting after the two-day slide, but were nearly flat due to tensions between Tokyo and Beijing.
Violent anti-Japanese protests broke out in several Chinese cities over the weekend, sparked by Japan's approval of a history textbook that critics say plays down Japanese military abuses such as the forced wartime prostitution of thousands of women.
On Wednesday, Japan announced it will allow gas companies to test drill in a disputed area of the East China Sea, also explored by China. Both countries are seeking to claim the gas deposits.
The broader TOPIX, which includes all issues on the Tokyo Stock Exchange's first section, dipped 1.38 points, or 0.12 percent, to 1,177.90 points. The TOPIX shed 10.84 points, or 0.91 percent, the day before.
U.S. stocks gained Tuesday, buoyed by reassuring words from the Federal Reserve and a drop in oil prices. The Fed's March 22 meeting showed it planned to stick with "measured" interest rate hikes, at least in the short term.
In other currency trading in Tokyo, the euro dipped to $1.2910 early Wednesday in Tokyo from $1.2994 late Tuesday and to 138.68 yen from 139.95 yen.