The benchmark Nikkei 225 Stock Average gained 274.33 points, or 3.05 per cent, to trade 9,265.39 at while the broader Topix index was up 19.94 points, or 2.43 per cent, at 839.56.
Japanese Prime Minister Naoto Kan is to hold talks with Bank of Japan Governor Masaaki Shirakawa Monday afternoon after the bank's meeting. The two are expected to discuss the yen's sharp rise and falling share prices.
The central bank started an emergency boarding meeting at 9 am (0000GMT) to discuss additional monetary easing measures amid mounting concerns about the slowing economy and the yen's gains, news reports said. The Japanese currency hit a 15-year high against the dolla last week.
Shirakawa cut his US trip short by one day and returned to Tokyo Sunday. On Friday, Kan told reporters that he expected the central bank to take flexible action and implement appropriate measures to address the appreciation of the Japanese currency.
A stronger yen makes Japanese exports less competitive and erodes oversea searnings when the revenues are repatriated.
Kan also told reporters that the government would later in the day outline the framework for additional economic stimulus measures.
On Friday, US stocks surged as the government reported a slowdown in second-quarter growth that was nevertheless better than analysts had expected.
US Federal Reserve Chairman Ben Bernanke offered the markets some hope by pledging the central bank "will do all that it can to ensure continuation of the economic recovery" in a speech to other central bankers at a conference in Wyoming.
On currency markets at 9 am, the dollar traded at 85.59-61 yen, up from Friday's 5 pm quote of 84.65-66 yen.
The euro traded at 1.2752-2757 dollars, up from 1.2727-2729 dollars, and at 109.14-17 yen, up from 107.74-78 yen. //DPA
