Tokyo stocks were flat on Tuesday morning as investors sought fresh trading cues, while Toshiba and Mitsumi Electric hit the headlines on individual news.
The Nikkei share average was flat at 18,913.41 in midmorning trade after falling for two straight days.
Traders said that investors remain on the sidelines after digesting the Bank of Japan's decision last week to announce only minor adjustments to its massive stimulus programme.
"The mood will likely depend on moving oil prices for now," said Yutaka Miura, a senior technical analyst at Mizuho Securities.
US crude futures jumped away from 2009 lows in early Asian trading, but the market remained jittery about oil prices, he said.
"Although trading will likely stay directionless throughout the day, if oil prices gain in Asian trade and U.S. futures rise, Japanese stocks may be bought in the afternoon," Miura said.
Meanwhile, he said, investors would to individual companies' trading cues.
Toshiba Corp stumbled 7 per cent after saying on Monday it would book a record net loss this year and cut around 5 per cent of its workforce.
Mitsumi Electric Co surged more than 15 per cent after Minebea Co had said on Monday it planned to acquire Mitsumi in a bid to expand its electronics parts business.
McDonald's Holdings Company fell 4.2 per cent after the Nikkei business daily reported that US-based McDonald's Corp is reaching out to investors about selling a part of the fast-food company's stake in its Japanese arm for about 100 billion yen. McDonald's, which owns nearly half of the Japanese unit, has asked potential buyers to respond by mid-January, Nikkei said.
Exporters were mixed, with Toyota Motor Corp rising 1.3 per cent while Honda Motor Co flat and Panasonic Corp dropped 0.9 per cent.
The broader Topix was flat at 1,531.15 and the JPX-Nikkei Index 400 was also flat at 13,791.19