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Since new BoJ Governor Haruhiko Kuroda promised on Thursday to inject about $1.4 trillion into the economy in less than two years, the yen has fallen more than 6 % against both the dollar and the euro and sent Japanese stocks higher.
Japan's Nikkei stock average jumped as much as 3.1 % on Monday to its highest since August 2008.
"The BoJ's bazooka has sparked the buying of Japanese stocks, especially domestic sectors like real estate," said Yasuo Sakuma, a portfolio manager at Bayview Asset Management.
The prospect of Japanese investors moving out of their domestic debt market due to the BoJ buying has boosted demand for higher-yielding Spanish and Italian debt, sending their yields down sharply.
But Portuguese bonds bucked the trend after a constitutional court on Friday rejected four out of nine austerity measures in the government's latest budget, undermining its efforts to meet the terms of a bailout deal.
Spanish 10-year bond yields dropped 11 basis points to their lowest since February 2012 at 4.67 %. Equivalent Italian bonds fell 12 basis points to 4.29 %. The Portuguese 10-year bond yield rose 11 basis points to 6.54 %.
Meanwhile European share markets were recovering from their one-month lows hit on Friday when disappointing U.S. jobs data sparked fears that recovery in the world's biggest economy was losing momentum.
The FTSEurofirst index of top European shares rose 0.3 % in early trade, with London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX all 0.2 to 0.3 % higher.
U.S. stock futures were up 0.1 % to suggest a firm Wall Street open.
