Japanese stocks jumped for a second day after U.S. equities posted the biggest two-day rally in three years amid rising confidence about the global economic outlook after the Federal Reserve pledged patience on interest rates.

The Topix added 1.6 percent to 1,398.85 as of 9:01 a.m. in Tokyo, paring its loss this week to less than 0.1 percent. All of its 33 industry groups rose. The Nikkei 225 Stock Average surged 1.7 percent to 17,498.95. The Bank of Japan reports on monetary policy today two months after unexpectedly boosting stimulus amid a recession in Asias second-largest economy.

The BOJ completes a two-day meeting today with 33 economists surveyed by Bloomberg News forecasting it will maintain the expansion of its monetary base at an annual pace of 80 trillion yen ($676 billion).

Prime Minister Shinzo Abes government will budget about 3.5 trillion yen for measures meant to rekindle economic growth, bringing more fiscal firepower to bear on Japans slump than previously expected, the Nikkei reported today. Cabinet will approve the stimulus package as early as Dec. 27. It was originally expected to be worth between 2 trillion yen and 3 trillion yen.

The Standard & Poors 500 Index jumped 2.4 percent in New York yesterday, capping a two-day gain of 4.5 percent, the most since November 2011. Futures on the S&P 500 were little changed today.

Source : Bloomberg