Tokyo stocks surged Monday as investors welcomed the weekend capture of former Iraqi President Saddam Hussein by buying issues almost across the board.

The 225-issue Nikkei average marked its second-largest single-day point gain, advancing 321.11 points, or 3.16 percent, to close at 10,490.77.

The broader Topix index of all first section issues on the Tokyo Stock Exchange gained 24.25 points, or 2.43 percent, to close at 1,022.95.

Although Hussein's capture does not mean that concerns over terrorism will disappear or that Iraq's reconstruction will accelerate immediately, it eased investors' concerns over the Iraqi situation, brokers said.

"The single market-determining factor today was the capture of Hussein reported last evening (Sunday) Japan time," said Hiroichi Nishi of Nikko Cordial Securities Inc.

"The Nikkei index, however, became top-heavy when it neared the 10,500 line as investors likely hoped to wait and see how the U.S. stock market reacts to the news as the Japanese stock market was the first to open after (Saddam) Hussein's capture was reported."

Investors also hoped to monitor the level of the dollar, brokers said. The dollar traded mostly around 108 yen.

Rises in U.S. stocks Friday also warmed investor sentiment, brokers said. U.S. stocks advanced on upbeat profit forecasts from United Technologies Corp. and Coca-Cola Co., leading the Dow to close above 10,000 Friday for the second straight day.