Japanese stocks soared Monday on a weaker yen and a report that the Bank of Japan would start to buy government bonds this week.
The benchmark Nikkei 225 Stock Average gained 358.95 points, or 2.8 per cent, to end at 13,192.59 while the broader-based Topix index was up 35.5 points, or 3.33 per cent, at 1,101.74.
The central bank was expected to buy Government bonds worth 1.2 trillion yen ($12.2 billion) this week, the Nikkei business daily reported Sunday without citing any sources.
New bank governor Haruhiko Kuroda said Thursday the bank had decided to start aggressive monetary-easing measures to achieve a 2-per-cent rate of inflation to pull the world’s third-largest economy out of 15 years of deflation.
On currency markets at 3 p.m. (0600 GMT), the dollar traded at 98.53-56 yen, up from Friday’s 5 p.m. quote of 96.30-32 yen.
The euro was quoted at 127.91-96 yen, up from 124.31-35 yen late Friday, and at 1.2981-2984 dollars, up from 1.2908-2910 dollars.
A weaker yen makes Japanese goods less expensive abroad and improves repatriated earnings.