The optimism was encouraged by comments from Masaru Hayami, governor of the Bank of Japan. Mr Hayami said the central bank was still targeting the overnight call rate, guiding it to the lowest rate possible. Traders had feared the Bank might tighten its monetary stance.
STOCKS ROSE solidly amid growing optimism that Japan was finally about to emerge from recession. Bargain-hunting lifted the Nikkei 225 by 1.88 per cent and the index closed up 290 points at 15,779.60.