TOKYO (Kyodo) -- Tokyo stocks advanced Thursday, with the Nikkei briefly toping 40,000, as sentiment was boosted by growing speculation that the Bank of Japan will forgo raising interest rates this month.

The 225-issue Nikkei Stock Average ended up 476.91 points, or 1.21 percent, from Wednesday at 39,849.14. The broader Topix index finished 23.72 points, or 0.86 percent, higher at 2,773.03.

On the top-tier Prime Market, gainers were led by oil and coal product, service, and electric appliance shares.

The U.S. dollar climbed to the upper 152 yen range in Tokyo, as the yen was sold after reports signaled that the BOJ will keep the policy rate unchanged at its meeting next week, dealers said.

At 5 p.m., the dollar fetched 152.57-58 yen compared with 152.41-51 yen in New York and 151.65-68 yen in Tokyo at 5 p.m. Wednesday.

The euro was quoted at $1.0516-0517 and 160.45-49 yen against $1.0490-0500 and 160.01-11 yen in New York and $1.0489-0491 and 159.08-12 yen in Tokyo late Wednesday afternoon.

The yield on the benchmark 10-year Japanese government bond fell 0.020 percentage point from Wednesday's close to 1.045 percent as the debt was bought on the back of the reports about the BOJ.

Stocks rose for the fourth consecutive day, with the Nikkei briefly topping the 40,000 threshold for the first time in two months.

"Investors had been wary about the BOJ's rate hike, but the reports helped ease their concerns, giving them the push to buy," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory Co.

The market also gained steam as export-oriented auto and electronics firms were bought on the weaker yen, which boosts their profits when repatriated. High-tech issues also rose after the Nasdaq index ended at a record high overnight.

But its upward momentum slowed toward the close as investors moved to lock in gains.