Stock prices in Japan have risen sharply amid signs of increased expectationsthat the government will implement measures to boost the economy.

The Nikkei index finished the day more than four per cent higher, adding to Tuesday's rise of about three per cent.

Correspondents say some foreign investors have begun injecting additional resources into the Tokyo stock market.

But they say it'sstill unclear whether there has been a fundamental shift in attitude while prospects for a general improvement in the Japanese economy remain bleak.