Tokyo stocks rebounded from opening losses as the Bank of Japan Governor Haruhiko Kuroda said on Monday the central bank will take necessary steps to stabilise markets jolted by the coronavirus outbreak, bolstering speculation about coordinated global policy action.

Kuroda's comments, made in an emergency statement just days after a similar move by Federal Reserve Chair Jerome Powell, were welcomed by markets as a signal that the world's biggest central banks were mustering a coordinated policy response to the crisis

Kuroda said financial markets have made "unstable movements" on heightening uncertainty over the impact on the economy from the epidemic.

"The BOJ will monitor developments carefully, and strive to stabilise markets and offer sufficient liquidity via market operations and asset purchases," he said.

The benchmark Nikkei 225 index rose 1.25 percent, or 263.28 point, to 21,406.24 in early afternoon trade, while the broader Topix index was up 1.34 percent, or 20.20 points, at 1,531.07.

Investors are "watching the number of patients short-term, while governments of relevant countries are readying measures" including economic stimulus, Yukino Yamada, senior strategist at Daiwa Securities, said in a commentary.

"In the Tokyo market, concerns are emerging that shares have oversold," she said.

In a rare statement, the Bank of Japan said it "will strive to provide ample liquidity and ensure stability in financial markets" to divert risks linked to instability in global markets caused by the spread of the disease.

The announcement came after Federal Reserve boss Jerome Powell on Friday said the US central bank was following developments in the virus outbreak and sait it "will use our tools and act as appropriate to support the economy".

The dollar rebounded to 108.20 yen in the afternoon, from around 107.70 yen in the morning.

The BoJ statement "prompted purchases", Okasan Online Securities analyst Yoshihiro Ito said in a note.

In Tokyo, some blue-chip exporters rebounded after opening lower, with Toyota trading up 0.63 percent at 7,172 yen and Panasonic rallying 1.11 percent to 1,042 yen.
Sony surged 4.54 percent to 6,911 yen and Nintendo climbed 3.58 percent to 37,570 yen.

AFP