Japanese stocks rise amid falling bond yields

Japanese stocks closed higher on Monday, as 10-year government bond yields fell, with investors buying medium- and long-term bonds as markets awaited the possibility of a Bank of Japan interest rate hike.

The Tokyo Stock Exchange reported that the 225-issue Nikkei index closed up 1.18 percent, or 396.78 points, at 33,982.36. The broader Topix index also rose 0.88 percent, or 21.60 points, to close at 2,488.51.

In the bond market, the yield on 10-year Japanese government bonds fell by about a basis point to 1.336 percent.

In terms of exchange rates, the Japanese yen rose nearly 0.8 percent against the US dollar to 142.29 yen during morning trading.