Tokyo stocks soar 3.55% on Japan vote stimulus hopes

Tokyo - Tokyo stocks soared on Monday morning as traders cheered a strong US jobs report while a landslide victory for Japan's ruling coalition in weekend elections boosted stimulus hopes.

The Nikkei 225 surged 535.55 points, to 15 642.53, while the broader Topix index of all first-section shares climbed 42.47 points, to 1 252.35.

Prime Minister Shinzo Abe's coalition swept weekend parliamentary elections despite lukewarm public support for his economic policies, dubbed Abenomics, and wariness over amending the country's pacifist constitution.

The victory fanned speculation Tokyo would soon launch a stimulus package, reportedly worth as much as ¥20trn, to kick start growth.

"Investors are basically welcoming the victory of Abe's ruling coalition," Daisuke Uno, chief market strategist of Sumitomo Mitsui Banking, told AFP.

"But the question is whether or not stock prices can keep up this pace."

Nintendo was a stand-out, rocketing more than 20% and extending a rally sparked by news that its smartphone game debuted at the top of gaming charts.

The videogame giant jumped 22.80% to ¥19 980 as Pokemon - which connects a user's real-world location to the game as they try to catch on-screen characters - launched in the US and Australia and was an immediate hit with fans.

In March, the Super Mario maker released Miitomo, its first-ever mobile game, as it moved away from a longstanding consoles-only policy.

Optimism boosted by Friday's strong US jobs report, which eased fears over a slowdown in the world's top economy, pushing Wall Street and European equities higher.

Private businesses and government authorities across the United States generated 287 000 new positions last month, 112 000 more than analysts had expected.

Toyota and Nissan both surged about four percent to ¥5 258 and ¥955.8, respectively. Honda jumped 3.39% to ¥2 560.5.

Banking-linked shares also pushed higher, with Mitsubishi UFJ Financial Group rising 4.05% to ¥446.1 and rival Sumitomo Mitsui Financial Group tacking on 2.34% to end the morning at ¥2 840.

Sony soared 4.28% to ¥3 142 and factory robot maker Fanuc advanced ¥3.61% to 16,060.

Energy explorer Inpex added 2.27% to ¥758.4 and refiner JX Holdings gained 2.20% to ¥389.4.