Tokyo stocks were flat by the break Monday on uncertainty over the global outlook and weakness in mobile carrier Softbank, which is planning a mega deal to take over US-based Sprint Nextel.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange inched up 0.02 percent, or 1.56 points, to 8,535.68, while the Topix index of all first-section issues gained 0.21 percent, or 1.54 points, to 719.86.
Softbank was a major drag on the market, with its shares falling 5.55 percent to 2,262 yen, after tumbling 17 percent Friday on news that it is in talks to buy a 70 percent stake in Sprint for $20 billion.
Europe's debt crisis, China's economic slowdown, and concerns over corporate earnings in the United States also weighed on sentiment.
The euro bought $1.2906 and 101.28 yen in Tokyo midday trade, compared with $1.2958 and 101.60 yen in New York late Friday.
The dollar was at 78.47 yen against 78.39 yen in US trade.