TOKYO (AFP) - Japanese stocks jumped nearly three per cent in opening trade on Monday as investors cheered Tokyo winning its bid to host the 2020 Olympics, good news for construction, real estate and sportswear firms.
The benchmark Nikkei 225 index, which fell 1.45 per cent on Friday, opened up 2.03 per cent and expanded its gain to 2.82 per cent, or 390.21 points, to 14,251.02 in the first few minutes of trade.
"Tokyo's hosting the Olympics, and the ongoing yen weakening trend, combined with improving global economic outlook will likely offset negative factors such as weaker-than-expected US jobs data and concern over US military action in Syria," said Hiroichi Nishi, general manager of equities at SMBC Nikko Securities.
Before markets opened Monday, Japan revised upwards growth data for the April-June quarter, with the world's number-three economy expanding 0.9 per cent from the previous three months, compared with an initial 0.6 per cent estimate.
Shares of companies that could benefit from 2020 Summer Olympics-related demand soared.
Leading construction firm Kajima soared 12.74 per cent to 407 yen while Shimizu was up 10.33 at 491 yen.
Major real estate firm Mitsui Fudosan jumped 7.59 per cent to 3,470 yen.
US stocks Friday finished a volatile day little changed despite uncertainty over Syria and a disappointing jobs report with the Dow Jones Industrial Average slipping 0.10 per cent to 14,922.50.
On currency markets, the dollar was at 99.74 yen in Tokyo morning trade on Monday against 99.11 yen on Friday afternoon in New York where the greenback slid after the US government reported the economy had added a less-than-expected 169,000 jobs in August.
The euro was at US$1.3174 and 131.41 yen compared with US$1.3180 and 130.62 yen in US trade.