Around the World's Market: Tokyo

JAPANESE SHARES surged 3 per cent as a weaker yen eased fears of a further runaway rise in the currency, which could undermine Japan's fragile economic recovery.

A slight rebound in US stocks overnight also spread some relief over the market.

The Nikkei 225 closed up 504.64 points at 17,325.70.

"Despite the Bank of Japan's ambiguous remarks, the yen did not shoot up and that sent potential sellers of stocks to the sidelines," said one strategist.