The 225-issue Nikkei Stock Average finished 28.24 points, or 0.09 percent, higher from Friday at 29,774.11.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange closed 1.71 points, or 0.08 percent, lower at 2,042.82.
Trading volume on the main section decreased to 1,065.38 million shares from Friday's 1,196.35 million shares.
Tracking losses in the U.S. Dow index late last week, Tokyo stocks opened low in the morning as market participants were concerning the global economic recovery due to some European countries imposing lockdowns and restricting movements amid a fresh wave of infections in the region.
Both Nikkei and Topix indexes cut losses later the day since some investors bought on dips, encouraged by gains in U.S. stock futures, brokers said. However, the rebound was limited as many investors remained a wait-and-see attitude ahead of Japan's national holiday on Tuesday.
Yutaka Miura, the senior technical analyst at Mizuho Securities Co., said, "The recent resurgence of COVID-19 in Europe has led some investors to become concerned over a potential wave of infections in Japan in December through January."
Moreover, brokers said that the stock market's reaction was limited to the record economic stimulus package approved by the Japanese Cabinet on Friday, which includes 55 trillion yen (482 billion U.S. dollars) in fiscal spending.
By the close of play, advancing issues outnumbered declining ones 1,054 to 1,023 on the First Section, while 106 finished unchanged, with marine transportation and insurance sectors heading gainers as well as mining and air transportation sectors leading decliners.
Air and land transportation companies faced selling on concern that a potential resurgence of COVID-19 infections in Japan would once again harm the recovering travel demand. ANA Holdings and Central Japan Railway both ended down 0.6 percent, while Japan Airlines decreased 1.3 percent.
Energy-related shares were also weak after crude oil futures briefly plunged late last week on concern that the COVID-19 resurgence in Europe would slow moves to restart economic activity and reduce demand for oil. Cosmo Energy Holdings fell 2.1 percent, and rival refiner Eneos Holdings slipped 0.5 percent.
Meanwhile, Tokio Marine Holdings jumped 3.0 percent after releasing Friday an upward revision of its earnings and dividend forecasts for the business year through March.
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