The Nikkei average hit a seven-week high on Monday,lifted by exporters such as Canon Inc on a weaker yen amid growing expectations the Bank of Japan could mull loosening monetary policy further this week. Sources have said that Japan's central bank is leaning towards easing monetary policy again at its two-day policy review that ends on Wednesday. Investors will also be watching the US Federal Reserve's policy review meeting and the meeting of EU finance ministers to discuss Greece's financial problems. "Media reports say the BOJ will likely expand easing policy as a means to help the economy get out of deflation and that is a supporting factor for the market," said Mitsuo Shimizu,deputy general manager at Cosmo Securities. "If dollar goes above 91 yen or 92 yen,shares of exporters could further lead the market higher. The Nikkei could even test the year's high of 10,982 hit in January this week." The benchmark Nikkei was up 0.3 per cent at 10,786.43,well above its 25-day moving average of around 10,300,after earlier rising as high as 10,808.84,its highest since Jan. 21. Last week,the Nikkei gained 3.7 per cent,its biggest weekly rise in more than 3 months. The broader Topix added 0.6 per cent to 941.49.
