By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) -- Japanese stocks soared on Tuesday to stand head-and-shoulders over other regional markets, as investors returning from a four-day weekend played catch-up with central-bank decisions, strong U.S. jobs data and a weaker yen.

The Nikkei Stock Average soared 2.8% to 14,083.26, topping the 14,000-point level for the first time since June 2008, while the broader Topix index gained 2.6%.

The jump came as the market reopened for the first time since Thursday, reacting to developments in the interim, including the European Central Bank's quarter-point rate cut, the Federal Reserve's commitment to cut or increase its monthly bond purchases as required, and better-than-expected data on U.S. nonfarm payrolls.

The dollar (USDJPY) also moved back above the 99-yen level, staying within reach of the psychologically important Yen100 level, after trading under Yen98 during last Thursday's Japanese stock session.

"A further widening in the U.S. yield advantage over Japan will be required to push [the dollar's rate against the yen] higher, especially as recent flow data have shown both Japanese investor repatriation and net foreign buying of Japanese portfolio assets," Crédit Agricole head of global markets research Mitul Kotecha said.

"Despite these inflows, we expect a break [above] Yen100 to occur very soon, with appetite for foreign assets from Japanese [life insurers] and government pension funds, providing much of the ammunition for a sustained move higher," Kotecha said.

Shares of Toyota Motor Corp. (TM) jumped 4.6% a day after the Nikkei newspaper reported the auto giant was expected to report a more-than-tripling of its group operating profit for the year ended March 31, exceeding the forecast it issued in February.

Also leading the charge among exporters, shares of Nissan Motor Co. (NSANY) spiked 3.8%, Sony Corp. (SNE) surged 6%, and Nintendo Co. (NTDOY) added 2.5%.

Meanwhile, the Shanghai Composite Index rose 0.3%, and Hong Kong's Hang Seng Index edged up 0.2% in choppy trade, overcoming an early struggle to extend the gains they recorded in the previous session.

On the downside, South Korea's Kospi slipped 0.3%, while Australia's S&P/ASX 200 dropped 0.4% in Sydney, reflecting caution ahead of the Reserve Bank of Australia's monetary-policy decision.

Several surveys of economists showed a majority expecting no action, though markets were pricing a roughly 50-50 chance of a quarter-point rate cut.

Banking stocks weakened in Sydney, with shares of Commonwealth Bank of Australia [(CBAUY) off 1.1%, and Westpac Banking Corp. (WBK) 1.4% lower, while Australia & New Zealand Banking Group (ANZBY) declined 0.9%.

The drop came after Australia's banking regulator said it wouldn't delay the implementation of new minimum liquidity standards, breaking from international regulators who had decided on a 2019 deadline for global banks to put the rules in effect.

Meanwhile, shares of Billabong International Ltd. (BBG.AU) were halted in Sydney at the surfwear retailer's request, saying the move was related to possible transactions involving the company. The halt will be in effect until Thursday or whenever the company makes an announcement. Billabong has been in talks with potential buyers.

Weakness in financial stocks limited gains in Hong Kong, with Agricultural Bank of China Ltd. (ACGBY) losing 0.5% and China Construction Bank Corp. (CICHY) dropping 0.5%.

Heavyweight HSBC Holdings PLC (HBC) moved in a narrow range around Monday's closing level ahead of its quarterly results later in the day.

The performance in Shanghai and Hong Kong came as markets awaited the release of a slew of Chinese economic data, starting Wednesday. China will release its monthly trade data Wednesday, followed by inflation numbers a day later.

Figures released recently from the National Bureau of Statistics and HSBC showed Chinese economic activity had cooled in both the manufacturing and services sectors in April.

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