Tokyo stocks rose Monday morning, lifted by a weaker yen amid expectations that the Bank of Japan will not make any changes to its ultraloose monetary policy at its meeting later this week.

The 225-issue Nikkei Stock Average gained 396.46 points, or 1.23 percent, from Friday to 32,700.71. The broader Topix index was up 18.68 points, or 0.83 percent, at 2,280.88.

Gainers were led by iron and steel, mining and transportation equipment issues.

The U.S. dollar fell slightly against the yen in Tokyo but remained strong after surging to the upper 141 yen zone Friday following news reports that the BOJ is unlikely to make changes to its ultraloose policy at its upcoming meeting.

At noon, the U.S. dollar fetched 141.40-45 yen compared with 141.80-90 yen in New York and 141.36-38 yen in Tokyo at 5 p.m. Friday.

The euro was quoted at $1.1124-1128 and 157.29-41 yen against $1.1119-1129 and 157.66-76 yen in New York, and $1.1127-1129 and 157.30-34 yen in Tokyo late Friday afternoon.

The Nikkei stock index briefly gained over 400 points in the morning, boosted by auto and other export-related issues on the yen's depreciation, analysts said.

The market was also supported by expectations that the U.S. Federal Reserve will end its interest rate hike cycle after one more increase at its meeting this week, analysts said.

"Stocks were rising on the yen's depreciation amid receding prospects that the BOJ will revise its policy and solid semiconductor-related issues that were sold heavily late last week," said Maki Sawada, a strategist in the Investment Content Department of Nomura Securities Co.

Steel issues also gained ground after Tokyo Steel Manufacturing Co. reported stronger-than-expected earnings for the April-June quarter. The steelmaker surged 300 yen, or 21.4 percent, to 1,703 yen.

Semiconductor heavyweight Tokyo Electron gained 495 yen, or 2.6 percent, to 19,795 yen, while chip-testing equipment maker Advantest jumped 500 yen, or 2.5 percent, to 20,275 yen.

Among exporters, Mitsubishi Motors soared 28.8 yen, or 5.6 percent, to 547.7 yen, while Nissan Motor advanced 20.0 yen, or 3.3 percent, to 624.6 yen.

==Kyodo

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