Japan Stocks Mixed; Markets Eye US Economy, Obama

TOKYO (AP) — Japan stocks closed mixed Monday as investors struggled to find direction amid persistent economic and political uncertainties.

The benchmark Nikkei 225 stock average rose 19.64 points, or 0.2 percent, to 9,808.99 after recovering early declines. The broader Topix index lost 0.4 percent to 870.67.

U.S. stock indexes posted moderate gains Friday even after the government said the unemployment rate topped 10 percent last month for the first time since 1983. Investors took the weak jobs report as a sign that interest rates in the world's largest economy will stay low for the time being.

Still, the latest unemployment rate underscores Japanese doubts about the global economic recovery. Fumiyuki Nakanishi, chief equity strategist at SMBC Friend Securities, expects trading to stay stagnant this week.

"We don't know where the U.S. economy is headed," he said. "We don't know where foreign exchange is headed. And with Obama coming soon, there are questions about the future of U.S.-Japan relations."

President Barack Obama is scheduled to meet with Japanese Prime Minister Yukio Hatoyama in Tokyo before heading to China, Singapore and South Korea.