Around the world's markets: Tokyo

THE NIKKEI 225 surged 4.12 per cent to close at 14,527.81, its highest in two months, after a leading strategist signalled new confidence in Japanese stocks. Barton Biggs, Morgan Stanley Dean Witter's top global strategist, raised Japanese equities to 75 per cent of their neutral weighting from 40 per cent.

Japanese markets were shut on Tuesday and had their first chance to react to Mr Biggs's reweighting yesterday. But few traders feel Japan's market woes are over.