An operation region is defined as being divided into at least two types of areas of a first area and a second area bordering on the first area. An indicated coordinate set is detected, and it is determined whether the indicated coordinate set is encompassed in the first area or the second area. When the indicated coordinate set is encompassed in the first area, the indicated coordinate set is set as the reference coordinate set. When the indicated coordinate set is encompassed in the second area, a predetermined coordinate set closer to the first area than the indicated coordinate set is set as the reference coordinate set. Based on the positional relationship between the reference coordinate set and the indicated coordinate set, an operation on an object in a virtual space is controlled.