TOKYO, Dec. 2 (Xinhua) -- Tokyo stocks rebounded Monday as speculation of an additional rate hike by the Bank of Japan at its December policy meeting boosted banking and insurance stocks.
The benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, gained 304.99 points, or 0.80 percent, to close at 38,513.02.
Besides the rate hike expectation, reports that the Government Pension Investment Fund (GPIF) plans to raise its yield target by 0.2 percent led to expectations of increased demand for equities due to a potential rise in the stock allocation ratio.
According to a report by Nikkei Online, the Ministry of Health, Labor, and Welfare revealed plans to raise the yield target for GPIF-managed assets. The adjustment is expected to increase GPIF's current domestic and foreign stock allocation of 25 percent each, driving higher demand for stock purchases.
The broader Topix Index also rose, closing 34.01 points, or 1.27 percent, higher at 2,714.72.
The Tokyo Stock Exchange's Prime section saw advancers outnumbered decliners, with 1,066 stocks rising, 512 falling, and 66 unchanged. ■