Olympics could seal Japan's revival: analysts

Olympics could seal Japan's revival: analysts
Japan's benchmark Nikkei average opened up more than 2 per cent higher on Monday, buoyed by anticipations that Tokyo's victory to host the 2020 Summer Olympics will give a boost to the nation's economy.

TOKYO--The 2020 Olympics could seal the revival of Japan's long-stagnant economy, analysts say, an echo of the 1964 Tokyo Games that showcased a nation risen from the ashes of defeat.

Staging the world's biggest sporting jamboree "is clearly a plus to (economic) growth," Prime Minister Shinzo Abe told journalists in Buenos Aires, hours after the Japanese capital was named as host.

"Japan has had 15 years of economic stagnation ... and we've lost confidence in ourselves. But I hope this will be a chance for us to regain that confidence," Abe said.

In the 1960s the Games were the coming-out party for a country that had grown its way to respectability after the ignominy of occupation after World War II.

The 1964 Olympics heralded the arrival of what was to become the world's second largest economy before it all came to a shuddering halt at the end of the 1980s.

Two decades of anemic growth and investment-sapping deflation saw China push a floundering Japan into third place, as repeated attempts to kick-start the economy did little but add to a mountain of debt.

Abe's election in December kindled hope of a recovery, and his economic plan, dubbed "Abenomics," has encouraged the green shoots of a recovery that optimists say might really take hold.

Now they hope that a second bite of the Olympic cherry could cement that recovery and recharge the country.

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