The Nikkei stock index jumped over 2 percent Monday morning, as export-oriented issues were boosted by the yen's weakness against the U.S. dollar and investors hunted bargains after sharp losses last week.
The 225-issue Nikkei Stock Average rose 813.79 points, or 2.10 percent, from Friday to 39,521.43. The broader Topix index was up 40.35 points, or 1.51 percent, at 2,711.15.
The dollar stayed firm around the 149 yen line on expectations that the Bank of Japan is likely to maintain an accommodative monetary stance even if it moves to end its negative interest rate policy at its two-day meeting through Tuesday, dealers said.
At noon, the dollar fetched 148.94-99 yen compared with 149.03-13 yen in New York and 148.57-59 yen in Tokyo at 5 p.m. Friday.
The euro was quoted at $1.0889-0890 and 162.18-25 yen against $1.0882-0892 and 162.25-35 yen in New York and $1.0880-0881 and 161.65-69 yen in Tokyo late Friday afternoon.
A wide range of issues were sought throughout the morning, with the Nikkei index briefly gaining over 900 points, as the weakening yen lifted export-oriented issues including automakers.
"Caution regarding the results of the BOJ meeting receded" as participants now widely believe the central bank will end its negative rate policy following recent news reports, said Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co.
Even if the BOJ decides to depart from years of aggressive monetary easing, its chief Kazuo Ueda has stressed that monetary conditions will remain accommodative, signaling that the central bank will not rush to raise interest rates.
Meanwhile, high-tech issues were bought ahead of a speech by U.S. chip giant Nvidia Corp. CEO Jensen Huang at its conference on artificial intelligence later in the day, with investors expecting his remarks will fuel growing expectations for the technology, Kamitani said.
