Japanese stocks surged by the most in four months as investors weighed prospects for central bank stimulus and bought back into a bear market to cover short positions.
The Topix index jumped 5.6 percent to 1,374.19 at the close in Tokyo, the most since Sept. 9 and paring its worst monthly loss since October 2008. The Nikkei 225 Stock Average soared 5.9 percent to 16,958.53, also supported by a report the Bank of Japan is considering extra monetary easing. Global equities halted losses on the brink of a bear market as oil rallied and the European Central Bank signaled it may boost stimulus.
All of the 33 Topix industry groups rose, led by developers, oil explorers and harbor transporters. Volume was 21 percent above the 30-day average. The index still closed down 2 percent for the week.