Nikkei surges over 2% on weak yen ahead of BOJ policy meeting

Tokyo stocks ended sharply higher Monday, with the Nikkei surging over 2 percent, as exporters were boosted by the yen's weakness against the U.S. dollar, while sentiment was lifted on receding concerns regarding the Bank of Japan's policy meeting results the next day.

The 225-issue Nikkei Stock Average ended up 1,032.80 points, or 2.67 percent, from Friday at 39,740.44. The broader Topix index finished 51.19 points, or 1.92 percent, higher at 2,721.99.

On the top-tier Prime Market, gainers were led by real estate, machinery and insurance issues.

The dollar was firm in the lower 149 yen range on expectations that the BOJ 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.

A wide range of issues rose on the Tokyo market, as investors bought on dips after the markets' recent sharp falls, while the yen's weakness led investors to seek export-oriented issues.

"While the consensus is that the BOJ will depart from negative interest rates and end its yield curve control, the bank is unlikely to further tighten its monetary policy," said Yutaka Miura, senior technical analyst at Mizuho Securities Co.

According to recent news reports, the central bank is widely believed to end its years of aggressive monetary easing. However, it will likely keep its policy accommodative, with BOJ governor Kazuo Ueda earlier stressing his intentions to not rush interest rate hikes.

Market participants will also be focusing on Ueda's remarks later Tuesday, analysts said.

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 further fuel expectations for the technology, they added.

© Kyodo News