Nikkei 225 surges on BOJ outlook, weak yen

Tokyo's benchmark Nikkei Stock Average rose sharply Monday on a clearer view of the Bank of Japan's future path and a weaker yen.

Many investors seem to believe the central bank will continue its easing measures even if it changes the monetary policy.

The Nikkei 225 ended at 39,740. It gained 1,032 points, or 2.7 percent, from Friday. Investors bought shares in a wide range of sectors, and export-related stocks such as automobiles and electronics led the way.

The yen weakened against the dollar on a rise in yields of US long-term interest rates. That's due to growing speculation that the Federal Reserve's policy rate cut will come later than expected.